The Asia-Europe and transpacific trades saw increases in allocated capacity between the first and second quarters of 2018, despite a drop on the transatlantic trade, according to data from BlueWater Reporting’s quarterly World Liner Supply (WLS) report.
BlueWater Reporting’s WLS report tracks the estimated weekly allocated TEU capacity of competitive direct liner services on 30 individual lanes operating between Asia, Europe, and North and South America. The report estimates the allocated capacity within each specific trade lane and takes skipped sailings and slow steaming into account. It is designed to help ocean carriers, non-vessel-operating common carriers, freight forwarders, shippers, ports and analysts monitor trends in ocean liner shipping capacity.
On the transatlantic trade, estimated weekly allocated capacity fell 7 percent between the first and second quarters of 2018, from 83,039 TEUs to 76,943 TEUs, despite the run up to peak season, according to data from the Q2 2018 WLS report. The decrease was a stark contrast from the 8 percent rise between the first and second quarters of 2017. However, estimated weekly allocated capacity on the trade for the second quarter of this year was still 3 percent higher from the corresponding 2017 period.
Meanwhile, estimated weekly allocated capacity on the transpacific lane has increased significantly since the first quarter of 2018. From Asia to the West Coast of North America, estimated weekly allocated capacity increased 5 percent between the first and second quarters of 2018, rising from 288,447 TEUs to 304,888 TEUs, while the Asia to East Coast North America trade experienced a 23 percent jump, from 121,426 TEUs to 148,880 TEUs. On a year-over-year basis, estimated weekly allocated capacity from Asia to the East Coast of North America increased 12 percent, while on the Asia to West Coast of North America trade, it rose 6.7 percent.
Surely, the Panama Canal expansion has been a huge influence in growth on the Asia to East Coast North America trade. Before the canal was expanded in June 2016, only vessels up to around 5,000 TEUs could transit the waterway, which has now been utilized by vessels over 14,000 TEUs. Dredging projects at ports along the U.S. East Coast are still underway to allow them to handle these larger vessels that can now transit the canal.
On the Asia-Europe trade, estimated weekly allocated capacity clocked in at 247,546 TEUs for the second quarter of 2018, up 8 percent quarter-over-quarter and year-over-year.
The 2018 Second Quarter World Liner Supply Report is downloadable in an Excel spreadsheet form here. You must be an American Shipper Premium Plus subscriber, a BlueWater Reporting individual subscriber or a BlueWater Reporting corporate subscriber to download the World Liner Supply Report. The report also may be purchased directly for $500.