Box volumes grew 2.1 percent year-over-year in July after a revised 3.3 percent increase the previous month.
Global transport volumes of containerized cargo grew 2.1 percent year-over-year to 14.01 million TEUs in July after climbing 3.3 percent the previous month, according to the latest data from industry analyst Container Trade Statistics (CTS).
Contrary to typical seasonal demand patterns, however, total shipments were down 0.3 percent on a sequential basis, as rising imports and exports to and from Europe and an increase in North American imports were offset by declines in both inbound and outbound traffic in Asia, as well as exports from North America.
On a year-over-year bases, containerized exports from Europe grew just under 4 percent to 2.48 million TEUs, while import volumes ticked up 1.7 percent to 2.77 million TEUs.
Growth in Far East Asia volumes was even more muted, with exports ticking up 1.6 percent to 7.96 million TEUs for the month, while import volumes increased just under 1 percent to 5.29 million TEUs.
In North America, on the other hand, container export volumes slipped another 3.9 percent to 1.21 million TEUs, while imports rose 4.2 percent to 2.51 million TEUs compared with June 2017.
Ocean carriers will be hoping volumes continue to grow through the tradition peak season after reductions in available capacity have allowed them to increase rates on the major east-west trades. Firms may also be preparing for a weaker fourth quarter, as anecdotal reports seem to indicate shippers have been sending extra cargo, in particular from China, in advance of the imposition of additional import tariffs by the United States.
Rates had been under considerable pressure in the early portion of 2018 due to slowing demand growth combined with persistent overcapacity, leading to some less-than-stellar first-half financial results for carriers.
As of last week, however, Drewry’s World Container Index, one of the primary indices measuring spot market pricing for container freight, was up 16.8 percent compared with the same 2017 period.
According to Drewry, westbound rates from Shanghai to Rotterdam ticked up 1 percent on a sequential basis and 6 percent year-over-year to $1,803 per FEU last week.
Spot rates from Shanghai to Genoa showed a similar pattern, remaining relatively flat from the previous week but jumping 16 percent year-over-year to $1,894 per FEU.
In the transpacific, eastbound WCI rates from Shanghai to Los Angeles slipped 3 percent sequentially but were still up 36 percent from the previous year at $2,116 per FEU, while rates to New York grew 1 percent from the previous week and 39 percent year-over-year to $3,426 per FEU.
Pricing in the westbound transatlantic trade remained in positive territory as well, sliding 1 percent on a sequential basis but growing 13 percent from the same week a year ago to $1,950 per FEU.
The London-based consultancy noted in its weekly analysis that the average composite WCI so far this year now stands at $1,434 per FEU, which is 5.5 percent lower than the index’s five-year average of $1,518 per FEU.
Drewry said it expects rates to increase again next week, which would be welcome news to carriers looking to right their financial ship coming into the second half of 2018.
Shippers, especially those operating in the eastbound transpacific trade, have been feeling the squeeze of late, as tight capacity caused by seasonal demand increases, service withdrawals and the pre-tariff bump in volumes have in some cases resulted in U.S. import cargo being rolled.
Global container trade growth slowing
