Tension on Asia-Latam routes: reduced capacity and sustained increase in shipping rates

🌏 Relevant Update from Asia

If you're moving cargo from Asia, you've probably noticed warning signs: the available space is being drastically reduced, and scheduled departures start to sell out quickly.

📦 What is happening?

During the Week 30, the main shipping companies —CMA CGM, Evergreen Line, COSCO Shipping and HMM— reduced more than 14,000 available spaces, causing a significant contraction in capacity.

In addition, CMA CGM confirmed blank sailing on its M2X service for week 32, meaning that there will be no scheduled departure during that period. And the news isn't getting any better:

Between weeks 32 and 35, there are already at least three additional blank sailings, a move that is part of a generalized strategy by shipping companies to limit supply and push up spot rates.

🚢 Capacity at critical levels

The actual availability of space between all shipping companies for weeks 30 and 31 is estimated between just 2% and 5% of the total of the Asia-Latam trade. This behavior reflects the intention of shipping lines to “roll” cargo (delay shipments) and optimize their margins in the face of a scenario of high demand and congestion in Asian ports such as Ningbo, Yantian and Qingdao.

💲 Impact on rates and projections

Market sources anticipate rate adjustments (GRI) for August:

• COSCO Shipping has already reported increases in its services to Latin America.
• CMA CGM seeks to position its rate between USD 2,700 and 3,100 per container of 40', depending on the port of origin and destination.
• Added to this are additional costs for congestion and PSS (Peak Season Surcharge) surcharges, applicable from the second half of July.

📊 What it means for your operation

• Lower availability of equipment and space on ships.
• Sustained increase in fares on Asia-Pacific and Asia-Mexico routes.
• High risk of delays in connections and transfers, especially in services to the west coast of America.

In Interdabs, we monitor these market movements every day to anticipate risks, adjust shipping strategies and provide our clients with actionable and predictive information.

📩 Write to us and let's schedule a short session for more information.