Tight control over Asia-ECSA capacity helps drive freight rate gains despite weak demand prospects.
The Asia-East Coast South America container trade is the poster child for volatility, witnessing huge swings in monthly demand and freight rates. This year has been no different as far as box shipments are concerned, but despite that carriers have had some success in taming the worst of pricing’s ups and downs.
Headhaul southbound volumes from Asia to ECSA jumped 6% year-on-year in the second quarter, following a 17% decline in 1Q19. This see-saw performance has existed for many years: in the 26 quarters since the start of 2013, southbound flows have risen on 15 occasions and shrunk on 11.
