The bulk transportation market began to stage a "great retreat"!
The latest World Container Rate Index (WCI) report released by shipping consultancy Drewry shows that spot container rates continued to fall this week, especially on Asia-Northern Europe routes where rates are now lower than before the pandemic.
According to the latest World Container Freight Rate Index WCI report released by well-known shipping consultancy Drury Drey on December 8, the WCI index continued to fall by 6% this week to 2,138.70 USD /FEU.
It was also the 41st consecutive week of declines and a 77 percent decline compared to the same period last year. It is 79% below the peak of $10,377 reached in September 2021. This is 21% lower than the October average of $2,692 /FEU. Drury said this represents a return to more normal rates, but is still 51% higher than the 2019 (pre-pandemic) average rate of $1,420.
"New players" gradually exit the long course
The sharp decline in freight rates between Asia and Europe, as well as between Asia and the United States and the West has also led to the gradual withdrawal of new shipping companies from some long-haul routes in the past two years.
Recently founded and previously ambitious, Allseas Global Project Logisitcs said it would terminate services on its China-Europe route due to a sharp drop in freight rates, shipping consultancy Linerlytica reported, after the company failed to meet its charter commitments to deploy six ships. Filed for bankruptcy in October.
In addition to Allseas, CULines has also recently terminated early leases for its 12 Panamax container vessels currently deployed on U.S. and European routes (owned by Antong Holdings Limited), and closed the bi-weekly Asia-Europe Express route operated jointly with TS Lines.
Shipping consultancy Alphaliner said in its latest market report that the relatively small vessels owned by companies such as CULines are no longer competitive on Asia-Europe trade routes at current rates.
Alphaliner data also shows that on the one hand, new players are withdrawing from the Asia-Europe route, and on the other hand, large container shipping alliances are also reducing the capacity of vessels on such long-haul routes.
