Ocean Freight Market Update II

Referring to our earlier news on the Ocean Freight Market we like to update you with the following information.

Latest developments March 2010

March 2010 is showing an extra slow steaming to continue and generating 5 % up to 7 % savings on ship-operating costs. Service and fleet-size restructuring programs are continuing and are in-line with the market demand. The programs showed improved control of capacity. The market growth in the Asia/Europe trade is expected to continue. The rate levels have been stabilized and even a tendency of decreasing costs after the Chinese New Year has been faced. The capacity influx on the Asia-Europe trade started with an increase representing 7% of the total route capacity, but is still in line with higher demand.
Ocean Freight Development–FCL

Eastbound (Europe-Asia)

Irrespective of the financial crisis Eastbound volume is still further increasing. The capacity due to the weight-factor is still very tight. It has been ascertained that a slow steaming program of all carriers did come up as from February. Still there is an equipment shortage in out ports.

Westbound (ASPA-EURO)

The market recovered after the Chinese New Year, but not as fast as expected. The space-requirement is/was no real issue last month and some new additional capacities will be phased-in the next few weeks or months. Carriers are watching the market carefully and may withdraw some vessel on ad-hoc basis in case of need for further market stabilization.