Export markets become “destabilized” as carriers “subsidize” capacity

Ocean carriers are scrambling to fill their vessels from China at deep discounts as minimum loads are not being met.

It is a given that if bookings remain below 60% of vessel utilization levels, carriers are canceling voyages at the last minute, declaring a blank sailing to the trade.

According to this week’s commentary from the Ningbo Containerized Freight Index (NCFI), export markets have been destabilized as carriers undersell their space.

In addition, spot rate indices are struggling to keep pace with the rapid erosion of rates on trans-Pacific trade lanes and between Asia and Northern Europe, as cheaper deals are offered every day.

(Wacket, 2022)