Its a good omen for the remaining of 2017: across all trade routes and markets, spot rates have stayed stable and softly rising, as a sign of the broad recovery of an industry that has been battling financial crisis for way too long.
According to maritime consultancy firm Drewry’s Container Freight Rate Insight, the Global Freight Rate Index for the first six months of 2017 was 36% higher than the same period in 2016. However, this recovery is still well below the 2015 levels, last year to see stable rates.
Eyes on the route
Despite the tangible spirit of recovery in the industry, it is difficult to predict which way rates will go during the second half of the year, because previous years’ trends have not been clear in this matter.
The sensible thing is to divide by trade route, studying the offer-demand behaviour and stationary peaks and declines of each one. On the East-West trade routes recovery has seen higher levels in the Asia-Europe corridor, with an increase of 61% during 1H17 compared to the same period in 2016, and even better than the figures recorded for the first six months of 2015. Europa-Asia saw a boost on the demand increase and alliance reorganization.
East-Transpacific routes saw 33% growth, while West-Transpacific routes performed lower compared to the two previous years’ first half. North-South routes India-Europa had the highest increase with 83% year-on-year growth and India-Europe showed 39% higher rates. Trade routes between Asia-Australasia and ECSA-Europe saw poorer results and did not reach the average rates of the two previous years.
Tendency to rise
Albeit not all routes have shown even growth, the expected trend is to continue to see steady increase in spot rates across all sectors during 2H17, all thanks to intense integrated operations activity that has managed to optimize the supply-demand balance.
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