Asia-North Europe spot rates have increased 327% to US$988 per TEU in the last week as the market anticipated the full 1st Nov general rate increase applying.
This significant rate rise coincided with carriers withdrawing surplus capacity for the winter season.
With the equivalent of 934,700 TEUs idle, as at Oct. 19, withdrawn capacity is at its highest levels since 2009-2010 and is set to breach the 1 million TEU mark within the next few weeks.
Carriers have effectively withdrawn three and a half strings to North Europe since September, equivalent to 35,000 TEUs a week, or about 12% of total capacity.
We will continue to monitor the market and keep our customers formed of changes that may affect them.
Please contact your account manager directly if you would like to discuss these developments.