Carriers’ bid to raise Transpacific rates mid-July has gained traction, supported by improved capacity utilisation levels and a 14% month on month reduction in capacity that has been bolstered by Zim’s withdrawal of the ZNP service and THE Alliance’s planned removal of one FE-USWC string from August. Despite the improved transpacific market sentiment, the SCFI slipped by 2.3% at the end of last week, dragged down by sharp falls in rates to Europe, Middle East and Australia, with the non-SCFI Transatlantic rates also falling back to 2019 levels after staying elevated for most of this year. More aggressive capacity cuts will be needed to bring about rate stability with carriers’ resolve to be tested over the next 4 weeks with their ability to push for rate increases in August still hanging in the balance.
Linerlytica
Weekly/Monthly Market Pulse: US$1,500/US$1,800 per year