For years, we have seen the liner vessel industry struggling with low capacity utilization and – as a consequence – insufficient revenues. In the wake of the Hanjin bankruptcy and further imminent consolidations within that industry, the capacity situation has changed drastically within a very short period of time. We are now confronted with capacity shortages, especially on eastbound routes from Northwest continent ports.
Carriers are now going for the highest possible yields in freight rates and are sometimes no longer honouring existing arrangements and bookings. General rate increases are now more likely to be executed and the enforcement of surcharges will prevail. Currently emergency surcharges of in between USD 300.00 and 1000.00 per teu are being discussed. We are actually facing pre-booking requirements of up to 6 or 8 weeks. We are of the opinion that this situation will last for quite some time to come.