Xeneta: Container Shipping’s Peak Season Weakens?
Due to a glut of surplus capacity in the container shipping industry, the peak season seems to have lost its previous impact, which was instead spread out through the year, the market intelligence platform for containerized ocean freight Xeneta said.
As the traditional peak shipping season is fast approaching, the container lines announced the implementation of GRIs effective August 1.
Namely, Hong Kong-based container shipping company Orient Overseas Container Line (OOCL) earlier revealed its intention to apply a USD 850 per TEU on the Asia to North Europe, the Mediterranean and Black Sea lanes, while the French shipping company CMA CGM said it plans to implement a USD 600 per TEU on Asia to North Europe.
Additionally, Germany’s carrier Hapag-Lloyd said it would increase its FAK (Freight all Kinds) rate on the Asia to Europe and Mediterranean lanes by USD 1,150 per TEU, according to the market intelligence platform.
However, in a survey conducted by Xeneta, 69% of people indicated that peak shipping season no longer exists, while 31% has a different opinion.
In light of technology gains, transportation of goods is becoming more efficient and as a result, the traditional peak season is also changing, Xeneta said.
Shipping consultancy Drewry earlier said that the 2016 third-quarter peak season is not expected to see much of a volume uplift in the container shipping industry.
Namely, the majority of shippers expect volumes for the third-quarter peak season to be the same as they were last year, while some anticipate lower volumes. In a survey conducted by Drewry, only 18% of shippers predicted higher volumes for container shipping’s busy period.