Line warns of peak season capacity and equipment shortages
Freight forwarders and shippers on the Asia-Europe trade have been warned they could be faced with equipment shortages and tight capacity during the coming peak season, according to the world’s third largest shipping line.
CMA CGM Senior VP Asia-Europe Nicolas Sartini told IFW the volumes experienced by shipping lines so far this year were “a little bit incredible”.
He expected demand to remain strong over the next three months and, as a result, he believes there is a risk that vessel space “could be tight” in the third quarter. He also said the industry could be faced with an equipment shortage.
He said: “In terms of container availability, we are starting to see the impact of slow-steaming. It takes more time to bring back the equipment to Asia from Europe and the US, on any trade.
“Secondly, because of the difficulty in accessing credit for financing, there was a lack of container ordering in 2009, and also this year.
“The lines are faced with very strong demand and difficulty in getting efficient equipment in time." As a result of the increased volumes, he expected to see a “correction” in rates in July, when second-quarter rates expire and carriers start to implement peak-season surcharges.
CMA CGM has announced a third-quarter rate increase on the Asia-Europe trade of US$250 per teu and it will implement a peak season surcharge of $200 per teu with two weeks’ notice.
Sartini’s remarks reflect those of forwarders who told IFW they were already noticing tightening of space and equipment shortages.
Looking further ahead, Sartini said the situation in Greece and the impact on the euro could also impact volumes in the fourth quarter – “a situation that we must take into consideration and treat seriously”.
Source: Damian Brett, IFW News, 09 June 2010