More carriers are expected to take Japanese carrier NYK’s lead and cancel their Asia-West Africa service as conditions go from bad to worse in terms of rates and volumes.
Maritime analyst Drewry highlighted in its recent report that NYK – which only joined the service in January this year – had pulled out of the joint WAX service with Hapag-Lloyd and Zim-affiliate Gold Star Line. The remaining service partners are expected to replace NYK’s tonnage with new charters.
According to Drewry, the lacklustre demand in the trade has forced carriers to curb any growth to capacity, with the monthly count of available southbound slots down by around 10% for the first ten months of 2015 compared to the same period last year.
Furthermore, despite the lack of recent change on the supply side, falling volumes have meant that average ship utilisation has slipped from the low 70% range to the mid-60% region.
Drewry points out that freight rates subsequently remain depressed and, even after a minor rally in September, they are currently only about half their value compared to last year at around $1 800 per 40ft container as of November.
