We're observing very low demand this week ex-Europe to China. This trend has continued putting additional pressure on already depreciated freight rates.
This is definitely a buyer’s market. Hence, carriers are competing hard in a « better than empty mode », that is to say literally box per box. This is negatively impacting FAK dry rates. This is the reason some trend setting carriers have unilaterally extended their February conditions up until the end of March. Reefer and Out of Gauge cargo are the hot ticket for carriers on this trade to save what can be saved in terms of Eastbound depressed P&L.
In this context, it is also predictable that some export Free Time restrictions in European Terminals will be tabled by carriers, in a pragmatic attempt to grab a few extra Euros of revenue.
To discover the latest trends on ocean freight rates, go to the benchmark page of upply.com!
See you next week,
Photo Credit : Pixabay