Please note that space is tight Ex North-East Asia and South-East Asia and is expected to remain tight through to Chinese New Year. Overbookings and rollovers are still occuring into November as we are now in peak season. Despite the fact we are in peak season, shippings lines are continuing to implement blank sailings and this driving up demand, and therefore prices, even further. Blank sailing dates and affected ports are below:
- Ex Qingdao ETD: 3rd & 10th November
- Ex Shanghai ETD: 6th & 13th November
- Ex Ningbo ETD: 7th & 14th November
So why have shipping lines been so successful in raising rates in the second half of 2019? In past years, shipping lines have had excess capacity in the market, which caused an imbalance in supply and demand. Further, the usual drop in market demand that we see is November is not happening this year. We expect space from Asia to remain extremely tight right up to Chinese New Year based on three significant reasons:
1. Ships being pulled from service and prepped for IMO 2020 compliance (scrubber installation)
2. Chinese New Year 2020 falls in January this year, which is earlier than in recent years
3. Further consolidation of shipping line service offerings to Australia. In late November, two regular shipping line services will be merged into one. The new merged route will reduce overall TEU capacity to Australia by 40%. The new routing will include six ships that will call on Pusan, Qingdao, Shanghai, Ningbo, Yantian, Sydney, Melbourne and Brisbane
Where possible if your cargo suits a NOR (Non-Operating Reefer) we will try and secure this type of container as these are prioritised for repositioning purposes.
We ask our clients to remain understanding and supportive of our staff during this difficult period as we are doing everything we can to try and secure space on vessels.