To be aligned with the news, and to explore routes other than the usual high-volume East-West ones, this week we’ll focus on this intra Med line. So far, very stable despite the threat of a potential general strike in the country. Discover the insight of Captain Upply.
CMA-CGM is still the trend setter on this trade lane (historically, it is CMA who boosted the container activity with Algeria and opened the region to the 40’). Even if there is far more competition on this lane than commonly accepted in shippers’ mindsets.
Fiscal FCL rate values from European Ports may look on the high side to Algiers compared with main flows to Asian ports, especially when you consider the short distance to deliver.
However, the structural weaknesses of Algerian Exports for containerized general cargo, results in a situation where carriers must bring most containers empty back into Europe, at their own expense. Logically, the Southbound leg pricing must consider the extra costs to bear.
One of the long-identified keys for a take-off in the Algerian Economy in terms of the general cargo market, would be a better balance between the in with the out, still a long way to go but expectations in the context are high !
To discover the latest trends on ocean freight rates, go to the benchmark page of upply.com!
See you next week,
Photo Credit : Dreamstime