December saw a 10% rise in Asia-Europe cargo bookings, with record capacity deployed as demand peaks ahead of Lunar New Year.
Container shipping demand from Asia to North Europe and the Mediterranean surged in December, with bookings increasing by 10% compared to the previous three weeks, according to London's S&P Global.
Data from Vizion indicated that 207,000 TEU were booked on Asia-Europe trades in the three weeks ending December 7. Peter Sand, chief analyst at Xeneta, noted that December has become the busiest month of the year for westbound corridors, with demand showing no signs of frontloading.
In response, carriers deployed record capacity, with Xeneta reporting 1.12 million TEU allocated to Asia-North Europe in December. This included 84,000 TEU blanked, a decrease from November's 126,000. Planned capacity for January is set at a record 1.17 million TEU, with 54,000 blanks announced.
For Asia-Mediterranean routes, carriers deployed 788,842 TEU in December, up from 713,489 in November, while blank sailings fell to 69,218 from 98,296. January deployment is projected at a record 849,371 TEU, with 39,706 blanks announced.
Hapag-Lloyd stated that capacity on main trade lanes into Europe is being increased to meet rising demand, with rates expected to peak in early January before slowing down towards February. Spot rates have surged, with Asia-North Europe at $2,350 per FEU, an 80% increase since October, and Asia-Mediterranean at $3,250 per FEU, more than double the levels seen on October 1, according to Platts.
Jacob Moe from DHL Global Forwarding noted that demand leading into the Lunar New Year is very strong, with bookings already being made for January. He emphasized that carriers are managing capacity through blank sailings rather than adding extra loaders.
Michael Aldwell of Kuehne + Nagel reported that Asia-Europe demand growth this year is between 10% and 14%, marking the strongest growth since before the global financial crisis. Container Trades Statistics revealed that Asian exports to North Europe and the Mediterranean reached 21.95 million TEU from January through October, reflecting an 8.6% year-over-year increase.
Analysts suggest that shippers are building inventory to mitigate potential disruptions if Red Sea transits resume. Andy Gillespie from WOWL warned that planning is challenging, with some orders routed via the Cape of Good Hope and others through the Red Sea, creating chaos for supply chain managers.
Mr. Gillespie added that European warehouses operating at 80% capacity or higher could be overwhelmed as diverted ships converge. He concluded that a safe return to the Suez route would ultimately benefit shippers, although carriers remain cautious about risks to crew, ships, and cargo.
