Volume decline slows in October, reducing container imbalance
The year long decline in Asia-Europe container traffic is slowing and freight rates are rising, according to the latest figures from ocean carriers.
Shipments from Asia to Europe fell 10 percent in October to 962,818 twenty foot equivalent units from 1.075 million TEUs a year ago, the European Liner Affairs Association said.
This compares with a 22 percent year-on-year declines in both the first and second quarters, the Brussels-based carrier organization noted.
"The export trades from Europe to Asia are now enjoying a mini boom," the ELAA said.
Shipments rose 12.57 percent in October to 464,689 TEUs from 413,249 TEUs a year ago.
"The importance of this figures is that it reduces the container imbalance significantly," the ELAA said.
Traffic from Northern Europe to Asia rose 9.86 percent while shipments from the Western Mediterranean and North Africa gained 12.04 percent and Black Sea and East Mediterranean cargoes soared 51.07 percent.
Higher cargo volume coupled with increasing numbers of laid-up ships is driving up freight rates on the Asia-Europe trades, with the westbound price index rising to 78 in September from 48 in March.
"With the annual contracts being renewed in January, one can anticipate further recovery," the ELAA said.
While the recovery in freight rates is most notable on the Asia-Europe routes, all container routes out of Europe are showing signs of improvement, according to the ELAA's latest monthly report.
The Europe-North America trade is still mired in recession with double digit declines on both legs in October. Westbound shipments shrunk 16 percent to 253,400 TEUs from 300,400 TEUs in October 2008, while eastbound traffic to Europe declined 17 percent to 220,200 TEUs from 265,300 TEUs.
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