WESTBOUND Mediterranean-North America container traffic in May climbed up to 105,000 TEU, slightly up from April's 103,000 TEU, but not enough to top March's total of 111,000 TEU, according to Drewry, the London shipping consultants.
Within the May total, 78,000 TEU was transported to the US, driven by the traditional demand for goods from Southern Europe, followed by 15,000 TEU to Canada, and Mexican volumes accounted for 11,000 TEU.
With regard to efforts made by shipping lines to reign in excess capacity, the analysts said such attempts were moderately successful in May. Overall trade capacity grew by 3.9 per cent in May, down from April's increase of 5.6 per cent.
However, overall capacity fell by a marginal 0.6 per cent in June to 148,057 TEU. "The expectation is that carriers will continue to try to limit capacity, although this might change depending on the nature of vessel cascading off the main Asia-Europe trades," Drewry said.
According to a report by Drewry Maritime Research, westbound volumes are said to be picking up, particularly out of the eastern Mediterranean with Turkey leading the way.
The value of Turkey's exports of apparel to the US in May grew 22 per cent compared to the same month in 2012 to reach US$5.6 billion, an increase of over $1 billion in the space of a year, according to data released by the Istanbul Textile and Apparel Exporter Association. The organisation said exports in the first six months of 2013 rose in value terms by 6.6 per cent year on year.
The report attributed this growth to the continuing weakness of the Turkish Liram, which continues to give the country's exporters a competitive edge.
Adding to capacity on the trade lane was the June introduction of the Mediterranean-US East Coast (MAS) service by Hapag-Lloyd, which connects New York, Norfolk and Savannah to the main ports in Italy, France and Spain.
On the eastbound North America-Mediterranean trade, Hapag Lloyd and its partner Hamburg Sud are adding a port call at Salerno, Italy to their Mediterranean-Gulf (MGX) service, from which Savannah was dropped with the launch of the MAS service.
Analysts fear that the market would be "unsettled" if the G6 alliance shipping lines decide at some point to enter the market using their Asia-East Coast North America (via Suez) loops.
Total volumes in May amounted to 86,000 TEU, slightly higher than April's 84,000 TEU.
The report added that eastbound capacity was almost identical to the westbound leg and showed a similar slight decline, which may raise optimism that announced freight rate hikes due to be implemented at the beginning of August may sti
WORLD SHIPPING
01 August 2013 - 21:23
West-east Med-North America box route May traffic up, but capacity slips
WESTBOUND Mediterranean-North America container traffic in May climbed up to 105,000 TEU, slightly up from April's 103,000 TEU, but not enough to top March's total of 111,000 TEU, according to Drewry, the London shipping consultants.
WORLD SHIPPING
01 August 2013 - 21:23
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