GROWING numbers of layups during the winter season on services originating from the Far East are dampening freight rates on most trade routes, according to Paris-based Alphaliner.
GROWING numbers of layups during the winter season on services originating from the Far East are dampening freight rates on most trade routes, according to Paris-based Alphaliner.
Although layups were at an all time low in September the volumes were weaker than expected for Christmas demand and has seen it leap by 210 units to 526,000 TEU meeting May 2010's idle fleet record. The layups are expected to continue into 2012 with carriers dropping vessels from rotations before the New Year to see a deepening of 600,000 TEU laid up.
Even with a huge culling of capacity withdrawals rates of vessel utilisation remain below 90 per cent on most trade lanes. In October carriers dropped three strings on the FE-North Europe trade; two from the FE-Mediterranean trade; two from the FE-US east coast trade; seven from the FE-US west coast trade; two from the FE-west coast South America trade and two from the FE-east coast South America route, added the report.
