Drewry: Asia to Middle East, South Asia Trade Sees Weak Demand

ContainershipIllustration. Image Courtesy: Pixabay under CC0 Creative Commons license

Demand revisions suggest that demand from Asia to the Middle East and South Asia is in a steep decline, according to a report from shipping consultancy Drewry.

Namely, Drewry’s Container Trades Statistics (CTS) made a substantial downgrade to the shipments data for the Asia to Middle East and South trade that erased the reported very high growth in the first quarter.

The new CTS numbers indicate that westbound trade to both regions grew by 5% instead of the previously reported rate of 16%. Moreover, demand appears to be in retreat as second quarter volumes fell by 3%.

Broken down by region, the Asia to Middle East container trade decreased by 5.7% in the second quarter to 850,000 TEU, all but wiping out the first quarter gains. Data for July continued the depressing trend, falling by 11% so that after seven months the trade was down by 1.3% year-on-year, Drewry explained.

Container trade from Asia to South Asia also experienced a deficit in the second quarter, falling by 1.4% year-on-year, as well as a decline in July. However, the depth of the fall-off in traffic was less severe that it was for the inbound Middle East route.

On the supply side of the equation, the available slots are gradually being reduced as carriers respond to the weakening trading conditions. Drewry research indicates that westbound Asia to Middle East capacity was some 5% lower in August than the same month a year ago, whereas slots to South Asia were down by 4%.

“With westbound ship utilisation levels hovering around the 60% range in both trades, freight rates have been equally weak,” Drewry said.

“The latest data would suggest that far more capacity needs to come out of these trades for any chance of a freight rate recovery.”

Share this article

Follow World Maritime News

In Depth>

Events>

<< Nov 2018 >>
MTWTFSS
29 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

Offshore Wind Europe 2018

The Offshore Wind Europe speaker line-up is supported by executives who are leading the charge…

read more >

Europort 2018

From 15-17 May 2018, the 12th edition of Europort Romania willl take place in the IDU Hall in Constanta…

read more >

Petrochemical Supply Chain & Logistics Conference & Exhibition

The Petrochemical Supply Chain & Logistics Conference & Exhibition (15 – 16th November, Houston) is positioned at the forefront of the booming Petrochemical industry in North America.

This industry leading event is regarded as the most significant meeting place for supply chain & logistics professionals, where they meet to do business.

More Info

read more >

DREDGING FOR SUSTAINABLE INFRASTRUCTURE

The two-day-long programme offers six highly interactive sessions with contributions from…

read more >