2M cancellations will not affect rates
Maersk Line's and MSC's decision to suspend their AE2-service will cut approximately 5,7 percent of the west going capacity, but is a decision based more so on limiting damage due to the lack of demand in the coming months, Drewry claims.
The decision, made earlier this month in the 2M alliance, to suspend their AE2 Asia-Northern-Europe-service is not made in the efforts of raising freight rates, but should limit the lowering of prices in the coming months after a so far disappointing year for Shipping Companies, according to shipping analyst Drewry.
In the weekly assessment of global freight rates from the World Container Index, Drewry could confirmed that last weeks freight rates at Shanghai-Rotterdam fell by approximately 6% or 107 USD to 1,555 USD per FEU, while from Shanghai to Genoa fell approximately 3% to 1,518 USD per. FEU.
On the other hand, there is still a year-to-year increase of 7% and 5%, respectively. In contrast to these numbers, the average prices in Asia-US shipping have increased significantly on a yearly basis, an increase of 54% for Shanghai-Los Angeles and 70% for Shanghai-New York.