Carriers Face Headwinds on Rate Hikes, Drewry Says

Weak cargo volumes are limiting ocean carriers' ability to implement rate hikes for any sustainable period, despite concerted efforts to pull capacity from east-west trade routes, according to Drewry Maritime Research’s Container Forecaster report.

Average head-haul freight rates have declined from about $2,700 per 20-foot-equivalent unit in early March 2012 to $2,400 in early January 2013.

With another 40 ships of at least 10,000 TEUs scheduled for delivery this year, carriers will “have a very difficult time” deploying them without further damaging the supply-demand balance, according to the report. Operational alliances are expected to increase.

For a look at other implications of the report, JOC members can consult Joseph Bonney’s story.