Ocean freight rates from Asia are predicted to rise over the next few weeks, ahead of the traditional peak season period.
While there has been no major uplift in demand, carriers have been managing capacity through their blank sailing programmes. By gradually reducing capacity to meet demand they have created a squeeze on space and an opportunity to push rates up.
We are now expecting to see incremental rate increases on all East to West trade lanes, including Asia-Europe and Asia-North America, from now through to the end of the peak season.
There is also the opportunity to increase Bunker (BAF) levels after several of the world’s largest oil exporters announced surprise cuts in production at the weekend. The price of Brent crude oil jumped by around 6% yesterday, which also impacts the cost of low-sulphur fuel.
The next few weeks may well bring an end to the rock bottom rates we have been experiencing lately. Of course, we are monitoring the situation and will update customers as any definitive rate increases are confirmed.
If you have any questions regarding the above, then Westbound are here to help. So, please do not hesitate to contact us.
