Australasia-Asian trade demand stifles shipper complaints

A sign of the improvements came as a rate increase for the North Asia routes on July 1 went through with little shipper opposition. This was helped by temporary space shortages on the brink of the peak season due to vessel dry docking and redelivery, and some moderate downsizing of ships.

If conservative 5% demand growth materialises, demand could exceed supply by the end of the year and a 10% growth would mean a supply deficit in the third quarter.

Carriers need to seriously review their deployed capacity on the trades and to plan how they are to cope with peak season flows on lanes such as North Asia to Australia.

Shippers who enjoyed a US$300 per teu drop earlier in the year have seen the tables turn. Now, the lines appear to be in a strong position to insist on rate restoration.