Cargo owners are accelerating shipments on the Asia-Europe trade to avoid higher bunker fuel costs due from July 1, reported London's S&P Global.

Bunker prices surged after the Middle East war began in February, with emergency surcharges applied to spot shipments. Contract cargo is tied to quarterly bunker adjustment factors, which will increase rates in the third quarter, according to CEVA Logistics Senior Vice President Thomas Cassuto.

Cassuto stated that demand in late May is strong across Asia-North Europe and Asia-Mediterranean lanes, with bookings up sharply as shippers move cargo before the July deadline. Data from Vizion shows China-Mediterranean bookings up almost 50 percent in two weeks, while China-North Europe rose 36 percent.

Forwarders Kuehne + Nagel and DHL Global Forwarding reported robust bookings and rising rates despite increased capacity and fewer blank sailings. Capacity on Asia-North Europe in May is up 16 percent from April at 1.2 million TEU, with blank sailings down 5 percent, according to eeSea.

Paolo Montrone of Kuehne + Nagel mentioned that demand is partly driven by extended transit times and reduced capacity from rerouting around the Cape of Good Hope. DHL noted that vessels are operating at full capacity and bookings must be made well in advance.

Analysts expect demand to remain strong into summer, though visibility is limited as energy costs and freight rates continue to weigh on the market.