Drewry: New Asia-West Africa Services Result in Weak Rates

Image Courtesy: BSM

A demand growth recovery in the Asia-West Africa container shipping trade inspired two new fortnightly services, but freight rates have responded poorly, shipping consultancy Drewry informed.

Carriers have reacted to the upturn in demand by introducing two fortnightly services. The first, the joint WAX2/FEW5 from Maersk Line and CMA CGM was resurrected after being suspended in February when it was a weekly operation. The WAX2/FEW5 brings back six 4,200 TEU units to the trade, instead of ten units of 4,700 TEU it featured previously, on a rotation of Nansha, Singapore, Tin Can, Apapa, Cotonou, Singapore and back to Nansha.

The second new service comes from Cosco and Gold Star Line in the form of the WAX5/FA3 loop. It will use the same number and size ships as the WAX2/FEW5 and will serve Ningbo, Nansha, Hong Kong, Singapore, Port Kelang, Durban, Tin Can, Tema, and Ningbo.

The net impact from these two new operations is that the total number of available southbound Asia to West Africa slots will be approximately 5% greater in October than in the same month one year ago, according to Drewry estimates.

“The early indications suggest that these new services have had a destabilising effect on spot rates, which had risen steadily alongside improving ship utilisation in the first half of the year,” the shipping consultancy said. The average Asia to West Africa freight rates hit a 26-month high of USD 2,900 per 40ft container in July, before losing about USD 700 of their value in August.

“To avoid further spot rate collapses lines must be careful not to overload this trade with too much capacity as it continues its fragile recovery,” Drewry concluded.

Share this article

Follow World Maritime News

In Depth>

Events>

<< Nov 2017 >>
MTWTFSS
30 31 1 2 3 4 5
6 7 8 9 10 11 12
13 14 15 16 17 18 19
20 21 22 23 24 25 26
27 28 29 30 1 2 3

Maritime Information Warfare 2017

Maritime Information Warfare will focus on the growing need for navies to develop their information exploitation capabilities…

read more >

INTERNATIONAL GREEN SHIPPING AND TECHNOLOGY SUMMIT

The Summit will gather key marine experts and companies around the globe which have a big influence in the industry…

read more >

The CWC 18th Annual World LNG Summit & Awards Evening

The CWC World LNG Summit will continue to give you access to premium networking opportunities as it brings together the who’s who…

read more >

Marintec China 2017

The largest maritime event in Asia Pacific, Marintec China connects maritime professionals from the entire shipbuilding supply chain together.

Over the years, Marintec China has grown to reflect the size and importance of the Asian maritime market. 2015 event is another record-breaking edition with the largest exhibition area and the highest number of industry professionals attending ever. The encouraging figures proven that China remains one of the major shipbuilding nations and Marintec China has been the most authoritative platform in Asia.

With the maritime industry facing great opportunities but also many challenges, it is important for the industry to connect and engage more to ultimately win new business in globally-significant markets. A visit to Marintec China is a great way to learn about the latest technology and innovation of the supply industry, a platform for industry professional to meet face to face, make connection and do business.

Marintec China is poised to be the definitive event and is undoubtedly a must-attend for all involved in the maritime industry.

Marintec China will be held from 5 to 8 December 2017 at the Shanghai New International Expo Centre in Shanghai, China and continue its dedication to serve as the “LEADING” platform “CONNECTING” the community and “STRENGTHENING” the maritime industry.

Marintec China offers the perfect opportunity for companies serving the maritime market to showcase their innovations, products and services to a wide audience. A platform for face to face meetings in business, creating new relationships and consolidating existing ones.

More info

read more >