The volumes of container traffic from Asia to Middle East and South Asia reported rapid growth in first quarter of the year. The volume of traffic from Asia to the Middle East rose by record 17.6% yoy and amounted to 883,000 TEU, while the turnover of traffic from Asia to South Asia grew by 9.7% yoy to 838,000 TEU. Despite the growing demand on above mentioned routes, the supply of the market is still characterized by excess capacity. The total capacity in both directions increased significantly amid decrease in the number of canceled voyages. The statistic shows that trade flows are changing from East-West to internal-Asia, as emerging economies on the continent become more attractive market for Chinese export.
In April on container shipping routes Asia-Middle East there are 16 canceled voyages, compared to 50 canceled voyages in February. As a result, monthly capacity in this segment rose by 14% yoy to 480,000 TEU. In shipping routes Asia-South Asia the number of cancellations decreased in April to 12, from 47 in February, which grew the capacity by 7%.
The spot rates for carriage of 40-foot container from Shanghai to the port of Jebel Ali in UAE grew by 9% MoM to 810 USD, but remain lower by 34% yoy. The spot rates for transportation from Shanghai to the Indian port of Nhava Sheva in March dropped to 640 USD/FEU, which is 47% below last year’s level.