Asia-Europe volumes continue strong growth as backhaul trade softens /05.07.2010

ASIA-Europe volumes continued their strong growth in May with Europe-inbound cargoes rising by 20.8 per cent year on year to 1.1 million TEU, up from the 932,558 TEU recorded in May last year, according to the latest statistics released by the European Liner Affairs Association (ELAA).

Trade statistics on the Europe-Asia backhaul leg were not as flattering, with the trade posting its first year-on-year decline of 6.3 per cent. Second quarter growth has softened significantly from what was a very solid first quarter, where growth averaged at 22.9 per cent. Total second quarter figures collated on the trade to date show that the growth has dropped to just 0.2 per cent, and is now down 1.5 per cent from 2008…The slump in trade appears to have had no impact on the freight rate, as Europe-Asia rates continued to climb in May, according to the ELAA report. The rate is now hovering at around 115 on the rate index.

Oddly enough, the Asia-Europe trade did witness a marginal decline in May, as has been widely reported. The index rate fell just a few points to around 113, however, our information to date suggests that this rate fell no further in June. On the transatlantic trade from Europe, volumes continued to grow in May, with the ELAA reporting a rise of 15.8 per cent to 272,400 TEU. The figure is still down by 4.4 per cent from 2008. On the import leg to Europe volumes rose by 13.1 per cent in May, when compared with 2009, however, imports from North America were down a significant 28.9 per cent from 2008. Freight rates on the Europe inbound leg from North America rose for the month to roughly 102 on the index, which shows that rates are now back at their pre-recession levels. On the trade to North America, rates began to plateau in April and continued to remain flat in May.

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