Asia-Europe box traffic increased in January before renewing descent

Asia-Europe box traffic increased in January before renewing descent

FOR the first time in about a year container volumes rose on the Asia to Europe westbound trade in January when 1.3 million TEU was carried, an increase of 2.5 per cent compared to the same month a year earlier, according to the Container Trades Statistics Price Index.

The index compiled by two German research houses that records the container throughput of 39 ports worldwide shows that total box traffic last year fell by 4.8 per cent on this key global trade route.

On the other hand, the Asia to eastern Mediterranean and the Black Sea trade recorded an increase of 6.8 per cent year on year in January to 225,772 TEU.

The trade to north Europe was up 2.3 per cent to total 850,219 TEU, but western Mediterranean and north African volumes fell 0.5 per cent to 222,112 TEU.

Dry container volumes on westbound services outperformed reefer containers, by rising 2.7 per cent year on year compared with a decline of 5.9 per cent for reefer traffic, reports Lloyd' Loading List.

The main reason for container volume growth in January is the Chinese New Year holiday - a period when the world's factory shuts down - fell later this year in February making for a lower level of comparison in January.

Growth in westbound volumes during January triggered a rise in freight rates, albeit temporarily. The CTS price index rose from 77 in December to 82 in January.

By the upward momentum in January fizzled. The latest statistics from the Shanghai Containerised Freight Index show that at the beginning of March spot rates on the westbound trade to north Europe fell by eight per cent week on week, while rates on services from Asia to the Mediterranean shrank 10 per cent.

In north Europe, spot rates have declined 14 per cent since the end of January, casting a shadow over the plans of container shipping lines to introduce a general rate increase from mid-March of US$700 per TEU.