Transport & Logistics mode

Captain Upply’s lane of week 10: Shanghai - Le Havre

March 06 2019

Tough Times and rough seas for the ocean carriers with significant exposure in this trade lane. A lower than expected post Chinese New Year demand, combined with ample capacity clearly pushed rates downward. Let's dive into Captain Upply's outlook for this week.

Surprising? Not really, it has a lot to do with seasonality and the early year slowdown is something commonly anticipated by the carriers. However, 2019 is special: The decrease is still accelerating despite massive blank sailings and suspended service announcements due to the low volumes available.

Big European names in the retail industry are currently in their yearly tender negotiations with ocean carriers, announcing a decrease of the size of the pie, regarding the volume of TEUs available. This kind of news in a depressed market is directly affecting Spot rates.

Easter will be a tough time for the carriers in this corridor. We anticipate a P&L deterioration coming for the next 3 months. « Cash is king », and in those circumstances the carriers with heavy debt in conjunction with a low cash situation will suffer the most.

CaptainUpply_Shanghai-LeHavre_EN

To discover the latest trends on ocean freight rates, go to the benchmark page of upply.com!

See you next week,

Captain Upply

Photo Credit : Pixabay

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Expert in Ocean shipping for 25 years, Jerome puts all his knowledge of the industry to contribution for Upply. Ship captain at heart, he has written the English-French Lexicon of Containerized Shipping (Paris: CELSE, 2001).