GLOBAL demand continues to decline as the supply and demand balance in international shipping is under increasing pressure, according to data from Container Trade Statistics (CTS), reports Copenhagen's Sea-Intelligence.
Data shows that in August 2022, the annualised growth over 2019 was below the level seen in 2019, which means that unless carriers reduce capacity substantially, vessel utilisation will be low.
To maintain ultra-high spot rates, a nominal utilisation in excess of 92-93 per cent needs to be sustained on the transpacific, with the threshold on Asia-Europe being 85 per cent, said Sea-Intelligence.
'On the transpacific, utilisation dropped below 90 per cent for much of 2022, becoming a catalyst for the continued freight rate drop. In August, utilisation crossed the 90 per cent mark, but only just, still falling short of the 92 per cent threshold to indicate a rate increase,' said the firm's Sunday Spotlight.
On the Asia-Europe run, utilisation dropped even further. 'As we can see, 2022 utilisation on Asia-Europe has been consistently below the 85 per cent threshold to trigger a rate increase, and although the utilisation improved in August to 74 per cent from 72 per cent in July, the rolling two-month average saw a further decline from 76 per cent to 73 per cent.
This latest data simply reconfirms what has been the case since Spring 2022, ie, there is no underlying structural support for the high rates on transpacific and Asia-Europe.
SeaNews Turkey
Data shows that in August 2022, the annualised growth over 2019 was below the level seen in 2019, which means that unless carriers reduce capacity substantially, vessel utilisation will be low.
To maintain ultra-high spot rates, a nominal utilisation in excess of 92-93 per cent needs to be sustained on the transpacific, with the threshold on Asia-Europe being 85 per cent, said Sea-Intelligence.
'On the transpacific, utilisation dropped below 90 per cent for much of 2022, becoming a catalyst for the continued freight rate drop. In August, utilisation crossed the 90 per cent mark, but only just, still falling short of the 92 per cent threshold to indicate a rate increase,' said the firm's Sunday Spotlight.
On the Asia-Europe run, utilisation dropped even further. 'As we can see, 2022 utilisation on Asia-Europe has been consistently below the 85 per cent threshold to trigger a rate increase, and although the utilisation improved in August to 74 per cent from 72 per cent in July, the rolling two-month average saw a further decline from 76 per cent to 73 per cent.
This latest data simply reconfirms what has been the case since Spring 2022, ie, there is no underlying structural support for the high rates on transpacific and Asia-Europe.
SeaNews Turkey
