Asia-Europe sea freight rates up….

…as fuller than expected vessels proved predictions of weaker capacity wrong:

Freight rates on the Asia-Europe trades have bounced back from the lows seen in February and March as growing trade continues to squeeze capacity.

First-quarter results from Japanese lines MOL and K Line reveal strong demand from Europe and the US has kept vessels full, but the earlier drop in rates and higher than expected costs meant they missed forecasts.

MOL and K Line both missed their earnings forecasts due to the fact that almost everyone predicted that demand would not keep up with capacity and rates would therefore fall. Shippers managed to lock up low rates with the carriers who then ended up eating all that extra cost involved in handling extra capacity. Things don’t look to be getting better capacity-wise anytime soon, although we keep hearing about how all this extra capacity from super post-Panamax vessels will be coming online later this year and in 2007. It remains to be seen whether upcoming capacity will outstrip demand or vice versa.

Container lines slash capacity from Asia-Europe trade lanes

Carriers to restore pricing on Asia-Europe trade lanes

Imports From India Decrease

Maersk Posts Big Loss