Chinese NY Over Capacity
Container bookings from Asia to Europe are running over capacity in the build up to the Chinese New Year (CNY) period, which starts at the end of this month. The capacity problems are causing a spike in spot rates and space issues, with suggestions that some steamship lines have introduced roll pools.
One carrier has reported that they have received bookings taking them 200% over their capacity. This follows news that all of the main carriers were already at 100% capacity in the first week of 2017.
Traditionally the period leading up to CNY is one of the busiest of the year as manufacturers rush to move product before the region effectively shuts down. However, the reduction in capacity, which has been caused by last year’s demise of a major shipping line and the merging of other carriers, along with a relatively early CNY, means this year’s situation has become more difficult.
Additionally, there have been a number of cancellations of sailings for the period that immediately follows CNY which may result in ongoing capacity issues and rates continuing to rise.
We are closely monitoring and working hard to manage the situation and will keep our customers advised. However if you have any queries or concerns please do not hesitate to contact your local Uniserve representative.
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