CONTAINER shipments in the combined eastbound Europe to the Middle East and South Asia trade increased by 5.2 per cent in the first quarter compared to the same period a year earlier, Container Trade Statistics show.
However, the combined growth rate hides two very different performances by the two destinations. CTS reports that inbound traffic to South Asia surged 18 per cent in the first quarter to total 410,000 TEU, whereas Middle East imports decreased by two per cent to 590,000 TEU.
The same divergent story continued into April as Europe to Middle East traffic declined by 1.6 per cent compared to a 22.3 per cent jump for South Asia imports, reported New York's Marine Link.
The westbound trade was more balanced as exports from the Middle East and South Asia to Europe were much more closely aligned than they were in the opposite direction. Middle East exports increased 10 per cent in the first quarter to 225,000 TEU while outbound shipments from South Asia rose 8.2 per cent to 525,000 TEU.
After four months of 2018 the momentum is strongest for trade in both directions to/from South Asia as well as with westbound exports from the Middle East. On a rolling 12-month average basis, growth from Europe to South Asia topped 10 per cent after April and eight per cent in the opposite direction. The outbound trade from the Middle East clicked up to 6.4 per cent, but inbound trade is still languishing at minus two per cent.
Spot rates from Rotterdam to Nhava Sheva have been in decline for the past 12 months. According to Drewry's Container Freight Rate Insight 40-foot (FEU) container rates were US$1,230 in May, which represented a drop of 30 per cent on the same month one year ago when prices were at a recent high point. Rates from Jebel Ali to Rotterdam were priced at similar levels in May having been more stable over the past year.
Freight rates are expected to rise across the board for spot shippers due to higher fuel costs for carriers, but stronger fundamentals suggest the increases will be greater for South Asia.
However, the combined growth rate hides two very different performances by the two destinations. CTS reports that inbound traffic to South Asia surged 18 per cent in the first quarter to total 410,000 TEU, whereas Middle East imports decreased by two per cent to 590,000 TEU.
The same divergent story continued into April as Europe to Middle East traffic declined by 1.6 per cent compared to a 22.3 per cent jump for South Asia imports, reported New York's Marine Link.
The westbound trade was more balanced as exports from the Middle East and South Asia to Europe were much more closely aligned than they were in the opposite direction. Middle East exports increased 10 per cent in the first quarter to 225,000 TEU while outbound shipments from South Asia rose 8.2 per cent to 525,000 TEU.
After four months of 2018 the momentum is strongest for trade in both directions to/from South Asia as well as with westbound exports from the Middle East. On a rolling 12-month average basis, growth from Europe to South Asia topped 10 per cent after April and eight per cent in the opposite direction. The outbound trade from the Middle East clicked up to 6.4 per cent, but inbound trade is still languishing at minus two per cent.
Spot rates from Rotterdam to Nhava Sheva have been in decline for the past 12 months. According to Drewry's Container Freight Rate Insight 40-foot (FEU) container rates were US$1,230 in May, which represented a drop of 30 per cent on the same month one year ago when prices were at a recent high point. Rates from Jebel Ali to Rotterdam were priced at similar levels in May having been more stable over the past year.
Freight rates are expected to rise across the board for spot shippers due to higher fuel costs for carriers, but stronger fundamentals suggest the increases will be greater for South Asia.