#INTHEAIREVERYWHERE |
Vol. 16 No. 5 | Friday
January 13, 2017 |
Goods Go Deep As Ocean Rebounds |
Ocean container shipping fundamentals are quickly regaining balance, helping boost freight rates on either side of the new year, heralding improved returns for shipping lines and higher prices for shippers in 2017. Dumps The Slumps
The traditional holiday season before and after
New Year is usually characterized by a slump in
ocean container shipping freight rates as demand
from key markets dims after the build-up of retailer
inventories before the festivities. Not this year,
though.
Read The Index
The Shanghai Containerized Freight Index reported
a marginal drop on routes from Shanghai to Europe
on January 6, but U.S. spot rates to the East and
West coasts again increased. Asian Europe Uptick
“The uptick in the Asia-Europe spot market
comes at a perfect time for carriers currently engaged
in contract negotiations with shippers and, while
some of the steam will go out after CNY, BCO [Beneficial
Cargo Owner] rates will definitely be higher than
they were this time last year.” Bimco Records Improvement
According to shipping organization Bimco, the demand
picture for liner shipping is also much improved
for 2017, although growth remains slow. “In
terms of more containerized goods being transported
on the sea, BIMCO expects U.S. imports to grow only
slowly, as economic growth begins to weaken,”
chief shipping analyst Peter Sand told FlyingTypers.
“European imports will grow slightly faster,
as consumer demand is still on the rise. On the
non-long hauls we expect imports from the Far East
into Middle East to become one of the brighter spots,
alongside the ever-rising intra-Asian trades.” Better Is Better
“Towards the end of the year and come 2018,
the benefits of the mergers seen in 2016 should
become visible—hopefully in the form of better
profits and fleet utilization, rather than just
lower costs and cheaper offers to shippers. |
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Vol.
16 No. 2 Delta 2017 Looks Like A Very Good Year Chuckles for January 5, 2017 It Takes A Village To Ship Air Cargo |
Vol.
16 No. 3 Turhan Özen Rides The Rocket Chuckles for January 9, 2017 Uli Uli Home Free Face To Face 2017 |
Vol.
16 No. 4 |
Publisher-Geoffrey
Arend • Managing Editor-Flossie Arend • Film Editor-Ralph Arend • Special Assignments-Sabiha Arend, Emily Arend • Advertising Sales-Judy Miller |
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