While our colleagues in China and Hong Kong enjoyed their Golden Week holidays the latest Container Trade Statistic have been released.
2017 trade on Asia-Europe grew by 5.3% to 7.9 million TEU and continued to increase through July when 1.5 million TEU were moved.
Yet even as this brisk trade meant that carriers enjoyed a healthy peak season, there is an abundance of surplus capacity, that is proving difficult for the carriers to manage.
While global supply/demand has improved compared to 2016, the industry still has structural overcapacity, which has seen scrapping and idling ships at record levels this year, and is why alliances are cancelling sailings.
Analysts believe that we will experience regular blank sailings in the rest of 2017. Their is speculation that OOCL will be announcing more.
Carrier’s will soon begin to announce their third quarter financial results and it will be interesting to see whether their financials are as strong as they were in the first half of 2017.