The related Chinese New Year (Year of the Pig) celebration has now commenced and will last up until February 19th. This means vacation time for most of the Chinese workforce, leading to a temporary but heavy slowdown in production and economic activity countrywide.
This yearly event is a well-known key industry milestone and was well anticipated by the 3 remaining Mega Alliances this year.
With significant existing volumes still available for departure on Chinese Terminals, we observe related pressure on Demurrage & Detention invoicing from the origin side.
Getting onboard in week 6 and 7 is a kind of luxury that comes at a price. In this respect, having FAK rates are the passport to be onboard during this period.
In this context, we also expect some FOB contracts to move under CIF terms, against local space guarantees, due to the global tight space environment.
Happy Chinese New Year to all our readers!