Maritime consultancy Drewry reported that carriers have added 1 million TEUs of new containership capacity to trades originating out of Asia in the first four months of 2024. However, congestion at ports in Asia and U.S. Businesses Spend $2.4 Trillion on Logistics ATA Reports 3.6% Rise in Truck Tonnage for May Small Forwarders Focus on Critical Business Over Sustainability Indian Government Approves $9Bn Port to Boost Trade With Europe some European hubs following strong demand on the Asia-Europe and Trans-Pacific trades, and the rerouting of ships around the Cape of Good Hope have canceled out the capacity added. BIMCO calculated that 10% more capacity than normal is needed to manage global container trades due to the rerouting of ships.
On the Asia-North Europe route, 24% more ships were deployed, and 17% more total capacity was added. Yet, this only increased effective capacity by 2%, Drewry reported. On the Asia-North America East Coast route, 9% more ships were added, but effective capacity remained unchanged. The lack of space has caused spot rates to skyrocket.
A survey by Drewry showed a trend of early imports by shippers, which has brought on an early peak season in Asia-Europe and Trans-Pacific trades. Drewry has warned of a possible “volume vacuum” when this demand peak subsides.
Source: Journal of Commerce
