HOW FREIGHT RATES ARE CHANGED BY CARRIERS’ RESTRUCTURING ROUTES?
A recent study by Alphaliner shows that major container liners have rearranged their service fleets in global routes in focus on more-profitable routes. For example, MSC reduced 7% in Asia-transpacific routes from 16% and increased Latin America routes, the same way as Maersk.
As the result of the global economic downturn and lifting is going down, the actions of re-structuring their tonnage coverage have been foreseen and be understandable. Further to an early article regarding potentially cutting capacity, shifting capacity tonnage in more profitable routes could help carriers regain market profit more effectively instead of withdrawing from services. Carriers also customized the productivity of capacity deployed with a transit time to balance the tonnage. Nevertheless, if container spot and contract rates on the Asia-Europe and transpacific trade lanes settle at just above breakeven levels, more carriers may decide to rethink their exposure to east-west routes and look in the direction of Latin America, Africa, and the Middle East, or endeavor to seek out niche trades. As a result, the freight rates could be changed in favorable ways for both carriers and cargo owners on these routes.
We, Voltrans Logistics, are keeping close on shipping and logistics movement in the market to update customers to adapt to the trends for suitable and reasonable reactions in this uncertain situation.
By Thomas
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