Asia-Europe space tight in Chinese New Year run in

Shippers and forwarders are still struggling to get cargo out of China before factories shut down for  Chinese New Year, according to one industry report.

The Transport Trackers report said that there had been a rising number of complaints from Shanghai and China about getting cargo out before the New Year holiday, with conditions reaching “pandemonium” because carriers had removed so much capacity.

“Getting cargo out of Shanghai has been hell and cargo owners have been forced to put cargo out at whatever rate is being asked,” the report said.

One importer had been forced to cancel its original shipment and rebook on a co-loader at higher rates.

Sources told IFW they were paying around US$1,800, including surcharges, per teu on the spot market. Cargo was also being turned away and rolled by shipping lines.

However, Transport Trackers said the current peace between carriers was “fragile”.

“Effective capacity reductions, through slow steaming and lay-ups, is working on increasing effective specific trade utilisations, to the point where some may add capacity.

“Herein lies the delicate part. The peace is fragile and rates are likely to face significant resistance after early and easy gains.

It added: “A warning to those who would cut rates in trades to gain market share: ‘why cut rates if you think you are going to pressure the competitior? They’ll simply run to their government to get a bailout or guarantee, which will in turn come back to haunt you’.”