RAPID demand on the Asia-Europe trade route is saturating all available ocean capacity originating from Asia, adding space limitations to the array of challenges confronting the market, including prolonged transit times, escalating rate levels, and surcharges in the Red Sea, reports New York's Journal of Commerce.
Designated accounts are fully booked until May, extending into June, and clients anticipate sustained high volumes.
There was a 10 per cent increase in TEU during the first quarter, which indicates that capacity is becoming increasingly scarce as new clients seek space.
DB Schenker COO Thorsten Meincke echoed concerns about tightening capacity from Asia, foreseeing challenges ahead in late April and early May.
LIDL senior adviser Jochen Gutschmidt emphasised that besides cargo rollovers, carriers are resorting to measures like cancelling contracts, imposing premiums for guaranteed space, and adjusting volume allocations due to the tightening space.
SeaNews Turkey
Designated accounts are fully booked until May, extending into June, and clients anticipate sustained high volumes.
There was a 10 per cent increase in TEU during the first quarter, which indicates that capacity is becoming increasingly scarce as new clients seek space.
DB Schenker COO Thorsten Meincke echoed concerns about tightening capacity from Asia, foreseeing challenges ahead in late April and early May.
LIDL senior adviser Jochen Gutschmidt emphasised that besides cargo rollovers, carriers are resorting to measures like cancelling contracts, imposing premiums for guaranteed space, and adjusting volume allocations due to the tightening space.
SeaNews Turkey
