The information service Alphaliner says spot freight rates from China to Europe have crashed.
"Spot freight rates from China to Europe are currently offered at $700-$800 per TEU, compared to $1,300-$1,400 per TEU at the beginning
of the year," it noted in its weekly newsletter
Alphaliner said 20 new ships of between 8,500 and 16,000 TEUs will be introduced into the Far East-North Europe trade in the second quarter, in addition to seven new units that were added in March.
"The rapid capacity influx has triggered a renewed rate war on this route," Alphaliner said.
"The timing of the deliveries was intended to take advantage of the anticipated summer peak season, but weak cargo volumes have kept utilization levels at only 80 percent on average in April with a very slow pick up in demand this year," it added. - Chris Dupin