Container lines offering more concessions adds to rates misery on Intra-Asia trades

Intra-Asia freight rates have hit rock bottom, with overcapacity and carrier concessions forcing prices to under US$10 on some lanes.

“The rate situation is a combination of overcapacity and, to an extent, a reflection of rate declines on the long-haul trades. But compounding the issue are carriers offering additional concessions, like longer freetime. With the freight levels the way they are, such concessions only serve to further aggravate the situation,” according to MCC Transport’s chief commercial officer Mr Potty.

Bangkok-based feeder carrier Regional Container Lines has entered a partnership with Yang Ming to pool resources and expand coverage through slot swaps, vessel chartering services and laden trucking and equipment interchange contracts. Taipei-based Wan Hai Lines recently joined forces with MOL to launch a Japan-India-Pakistan service.

Another possible effect of weak intra-Asia trade has been the lack of significant port congestion seen across Asia since 2014, a year characterised by bottlenecks and delays.
The most significant congestion this year has been in fast-growing Myanmar, according to MCC’s Mr Potty.