AfA Sees Some Growth in Containerized Shipping Demand, More Growth in Capacity
Demand for containerized ocean services was likely incrementally higher year-over-year through March and early April due to some organic growth, according to the monthly trend report by the Airforwarders Association. It said its research indicates same-shipper volume is likely up 2-3% year-over-year. It said industry commentary suggests demand for ocean freight forwarding services was up approximately 3% year-over-year during March.
Sign up for a free preview to unlock the rest of this article
Export Compliance Daily combines U.S. export control news, foreign border import regulation and policy developments into a single daily information service that reliably informs its trade professional readers about important current issues affecting their operations.
For the first quarter, carriers reduced capacity and stabilized rates while shippers continue to avoid using airfreight services, it said, and airfreight rates remain depressed. It said there are indications that airfreight capacity continues to outstrip demand as passenger airlines increase flight frequencies, which adds belly cargo capacity.
Inbound airfreight rates from Asia to the U.S. declined for the ninth straight month as a result of softer-than-expected airfreight volume, AfA said. Outbound airfreight rates were up 8.5% year-over-year during February. Exports grew, but the growth rate moderated as macro-economic concerns have lead shippers to be more cautious, it said.
Inbound containerized ocean volume at U.S. ports was up 14.6% year-over-year in March, AfA said, but it said it expects 2012 ocean volumes to remain sluggish through the second quarter.
Containerized exports from U.S. West Coast ports were up 3.3% year-over-year during March, AfA said, as developing countries buy more U.S. commodities.
Meanwhile, 4.6% of container ship capacity (measured in TEUs) was sitting in early April, versus 5.4% at the end of February and 4.9% at the end of January, AfA said. As of April 1, shipyards held orders for 568 new containerships with an aggregate capacity of 3.92 million TEUs, equaling about 25% of the existing world fleet. Even though capacity continues to exceed demand, container capacity will rise 7.9% in 2012, 10.6% in 2013, and 3.2% in 2014, AfA said.