 Container shipping demand from Asia to North Europe and the Mediterranean rose sharply in December, with bookings up 10 per cent compared with the prior three weeks, reported London's S&P Global.
Data from Vizion showed 207,000 TEU booked on Asia-Europe trades in the three weeks ending December 7. Xeneta chief analyst Peter Sand said December has become the busiest month of the year on westbound corridors, with demand showing no signs of frontloading.
Carriers responded by deploying record capacity. Xeneta data showed 1.12 million TEU deployed on Asia-North Europe in December, with 84,000 TEU blanked, down from November's 126,000. Planned January capacity is at a record 1.17 million TEU, with 54,000 blanks announced.
On Asia-Mediterranean, carriers deployed 788,842 TEU in December, up from 713,489 in November, while blanks fell to 69,218 from 98,296. January deployment is planned at a record 849,371 TEU, with 39,706 blanks announced.
Hapag-Lloyd said capacity on main trade lanes into Europe was being increased to meet demand, with rates expected to peak in early January before slowing toward February. Spot rates have surged, with Asia-North Europe at $2,350 per FEU, up 80 per cent since October, and Asia-Mediterranean at $3,250 per FEU, more than double October 1 levels, according to Platts.
DHL Global Forwarding's Jacob Moe said demand leading into Lunar New Year was very strong, with bookings already being made for January. He noted carriers were managing capacity through blank sailings rather than adding extra loaders.
Kuehne + Nagel's Michael Aldwell said Asia-Europe demand growth this year was between 10 and 14 per cent, the strongest since before the global financial crisis. Container Trades Statistics reported Asian exports to North Europe and the Mediterranean at 21.95 million TEU from January through October, up 8.6 per cent year over year.
Analysts said shippers were building inventory to buffer against potential disruption if Red Sea transits resume. WOWL's Andy Gillespie warned planning was difficult with some orders routed via the Cape of Good Hope and others through the Red Sea, creating chaos for supply chain managers.
Mr Gillespie said European warehouses operating at 80 per cent capacity or higher would be overwhelmed as diverted ships converge. He added that a safe return to the Suez route would ultimately benefit shippers, though carriers remain cautious about risks to crew, ships and cargo.
https://www.shippingazette.com/news?news_id=9251200000339
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