21.3 C
Monday, June 5, 2023
Evergreen Line
Evergreen Line
Evergreen Line
Home Freight News Vessel utilisation remains low, reports Sea-Intelligence

Vessel utilisation remains low, reports Sea-Intelligence

Danish shipping data analysis company Sea-Intelligence reports that global demand continues to decline, and whether we calculate the growth in TEU*Miles or as an annualised percentage over 2019, the supply/demand balance is under pressure.

The latest demand data from Container Trade Statistics (CTS) shows that in August 2022, the annualised growth over 2019 was below the level seen in 2019, which means that unless carriers reduce capacity substantially, vessel utilisation will be low.

Source: Sea-Intelligence.com, Sunday Spotlight, issue 586

"As we have shown several times in Sea-Intelligence the Sunday Spotlight, to maintain the ultra-high spot rate levels, a nominal utilisation in excess of 92%-93% needs to be sustained on the Transpacific, with the threshold on Asia-Europe being 85%," noted the analysts.

They went on to explain, "On the Transpacific, utilisation dropped below 90% for much of 2022, becoming a catalyst for the continued freight rate drop. In August, utilisation crossed the 90% mark, but only just, still falling short of the 92% threshold to indicate a rate increase."

In Asia-Europe, utilisation has been dropping even further, according to the analysts. "As we can see in figure 1, 2022 utilisation on Asia-Europe has been consistently below the 85% threshold to trigger a rate increase, and although the utilisation improved in August to 74% from 72% in July, the rolling 2-month average saw a further decline from 76% to 73%," they said.

Alan Murphy, CEO of Sea-Intelligence, commented, "This latest data simply reconfirms what has been the case since Spring 2022, i.e. there is no underlying structural support for the high rates on Transpacific and Asia-Europe."

Antonis Karamalegkos
Managing Editor

Latest Posts

Container Shipping Guide

International ocean freight shipping is one of the most preferred ways to securely ship your goods. However, you need to consider several things -...

Port of Felixstowe and Westwell sign agreenment for 100 autonomous trucks

UK's Port of Felixstowe and Shanghai Westwell Technology Co., Ltd (Westwell) have signed an agreement for an additional 100 battery-powered autonomous Q-Trucks.The order follows...

AD Ports inks 25-year agreement with Crystal Offshore

AD Ports Group has signed a 25-year agreement with Singapore-based Crystal Offshore, a provider of one-stop logistics solutions for the marine and offshore industry.More...

COSCO signs methanol fuel supply system deal for four boxships

COSCO SHIPPING Heavy Industry Technology (Weihai) inked an order agreement for methanol fuel supply system for four 16,000 TEU container ships with COSCO SHIPPING...

PSA BDP opens new EV battery warehouse in France

PSA BDP, a provider of globally integrated and port-centric supply chain, transportation, and logistics solutions, announced the inauguration of its new Electric Vehicle (EV)...