Demand, lack of re-positioned boxes drives Asian rollovers
SINGAPORE suffered a shocking 31
SINGAPORE suffered a shocking 31.1 per cent rollover rate in October as Asia-Europe and transpacific demand ate up available capacity, reported IHS Media.
Carriers struggled to return empties to Asia to meet soaring export bookings; the problem also afflicted Malaysia's Tanjung Pelepas with a 28.5 per cent rollover rate.
'Container lines are trying their best to cope with critical box shortages in Asia, but this is putting more pressure on operations and freight rates,' said Ocean Insights chief operations officer Josh Brazil.
'Carriers also no longer have the option of adding more vessels to boost capacity - almost the entire global fleet is currently active,' he said. 'I think what we are seeing is that the cargo pipeline has maxed out ocean supply chain capacity.'
Asian export demand has continued through October and November, traditionally the slow season, filling all available transpacific and Asia-Europe vessels, leaving boxes stranded in the US and Europe.
Among those carriers were Ocean Network Express (ONE), which had the worst rollover rate of transshipment cargo in October at 39.3 per cent, followed by Hapag-Lloyd at 37.7 per cent, Maersk at 35.1 per cent, Evergreen at 31.8 per cent, CMA CGM at 31.4 per cent, Cosco Shipping at 26.4 per cent, and MSC's rollover of transshipment cargo at 22.9 per cent in October.