Market analysts are surprised that freight rates from Asia to Europe have fallen so far in the third quarter (Q3) despite the fact that schedule reliability is only 30% and port congestion problems in Europe continues to tie-up so much capacity.
In Q3 there were 18 mega-alliance services between the Far East and North Europe, with 687 calls at Rotterdam, Hamburg, Bremerhaven, Wilhelmshaven, Antwerp, Zeebrugge, Felixstowe, Southampton, London-Gateway and Le Havre – when there should have been 827 port calls. A drop of 17%.
The lower total of 687 actual calls includes 26 off-schedule visits to ports that were not part of their regular schedule, as they were diverted due to congestion or industrial action: Rotterdam 8 calls; Wilhelmshaven 7; and Zeebrugge 7.
Port delays caused many ships to return to Asia weeks behind schedule, which has had the knock-on effect that carriers often do not have sufficient tonnage to schedule the front-haul trips from the Far East to Europe.
THE Alliance skipped the most planned North European calls at 26%, while 2M made 15% fewer calls and OCEAN Alliance 12%.
It is no surprise that the port of Felixstowe missed the highest percentage of Far East loop calls in Q3, down a massive -35%, due to the two week-long strikes by Unite union members. With no resolution and the likelihood of further disruption.
Far East alliance loops calls at Hamburg in Q3 were down over 26%, with the big carriers experiencing long waiting times in July and August, as their volumes for discharge at Hamburg are quite big. In September however, many vessels elected to skip the port.
The volatility in Far East – North Europe schedules was felt very strongly at Zeebrugge, which was skipped by 2M and only maintained a respectable call rate as Evergreen and CMA CGM diverted vessels to the port on an ad-hoc basis.
We are closely monitoring the situation at European ports, because disruption and congestion may delay UK vessel calls and and extend overall transit time.
We partner with the most reliable shipping lines and leverage long-standing relationships, to enhance the service we provide.
To learn how we can help you avoid European/UK disruption and port congestion, please get in touch with our sea freight team, or contact Andy Costara (andyc@globalf.com) directly now.
