Air and Sea Markets Face Uncertain Future
Last year proved tough for transporters on the world’s busiest trade routes between Asia and Europe. Both the sea and air markets suffered from weak demand and overcapacity as new orders of airplanes and ships continued to come on line.
The container shipping market was down around three percent worldwide by volume in 2012 compared to the previous year, says Denis Sanguinetti, sea-freight procurement manager at Bolloré Logistics. Routes between Asia and Western Europe suffered the biggest drop of between seven and eight percent, he adds. Similarly, the volume of goods transported by air fell by around 2.5 percent worldwide, says Georges Van Hove, manager of airfreight procurement at Bolloré Logistics. “The air-freight market will remain weak as long as the global economic recovery is uncertain and capacity stays high,” he warns.
In particular, the sea container market looks set to continue its record level of volatility as shipping companies seek to balance supply and demand. According to the China Containerised Freight Index, average freight rates rose from 881 points at the start of last year to a record high of 1,336 points in May before closing the year at 1,113 points.
The volatility comes from attempts by shipping companies to manage capacity between Asia and Europe. Danish shipping company Maersk Line, for example, last October reduced capacity on the route between Asia and Europe by removing one service permanently and suspending another before bringing it back towards the middle of December in time for the Chinese New Year, Sanguinetti adds.
The container shipping market was down around three percent worldwide by volume in 2012 compared to the previous year, says Denis Sanguinetti, sea-freight procurement manager at Bolloré Logistics. Routes between Asia and Western Europe suffered the biggest drop of between seven and eight percent, he adds. Similarly, the volume of goods transported by air fell by around 2.5 percent worldwide, says Georges Van Hove, manager of airfreight procurement at Bolloré Logistics. “The air-freight market will remain weak as long as the global economic recovery is uncertain and capacity stays high,” he warns.
In particular, the sea container market looks set to continue its record level of volatility as shipping companies seek to balance supply and demand. According to the China Containerised Freight Index, average freight rates rose from 881 points at the start of last year to a record high of 1,336 points in May before closing the year at 1,113 points.
The volatility comes from attempts by shipping companies to manage capacity between Asia and Europe. Danish shipping company Maersk Line, for example, last October reduced capacity on the route between Asia and Europe by removing one service permanently and suspending another before bringing it back towards the middle of December in time for the Chinese New Year, Sanguinetti adds.
