Ocean freight capacity decreases in Asia

28 October 2016

The space on container ships from Asia is currently limited. In particular with those coming from China, where there is a shortage of space. Several issues are causing this and it is expected that the capacity shortage will persist for the time being.

Too much cargo, too little room

Firstly, companies have miss-calculated the quantity of goods to be shipped from China following Golden Week. Usually, cargo levels are lower following Golden week, but demand is actually a bit higher than expected. In addition, many goods are currently being offered for the Christmas period.

Aside from the high demand level, cargo space has also become very limited. From November “blank sailings” will be placed in sailing schedules, therefore, there will be less room available. Moreover, a lot of capacity has been lost with the fall of shipping company, Hanjin. The demand for cargo is thus significantly more than the available space.

Anticipated delays

The large quantity of cargo along with the shortage of space can, for the time being, cause delays. So we are asking you and your suppliers to book as early as possible. In addition, consider the new rate increases starting November 1, as announced by the shipping companies. Limited cargo space will give this a higher chance of success. Therefore, the situation is unlikely to change in the short term.