CARGO volume from Asia to the Mediterranean fell in September and October compared to the normal peak season period between April and August, but year-on-year growth remained impressive, particularly to the eastern Mediterranean.
As expected, cargo growth from Asia to the Mediterranean tailed off in September and October, following the rush to move goods into the Mediterranean ahead of the August holiday period.
Exports from Asia in September reached only 373,000 TEU, followed by 369,000 TEU in October, compared to a monthly average of 411,000 TEU during the second quarter peak season, according to Drewry Maritime Research.
However, the year-to-date total of 3.9 million TEU was still 7.4 per cent higher than during the same period last year, mostly due to increased demand from eastern Europe. Growth to the western Mediterranean reached just 3.9 per cent, whereas that to the eastern Mediterranean climbed to a much more impressive 10.9 per cent.
Ocean carriers responded to the cargo downturn in September and October by withdrawing vessel capacity in a fragmented way. The net effect of this was that average vessel capacity fell by 6.7 per cent between August and September, down to 422,180 TEU, where it more-or-less stayed during October and November.
The consequence of cargo falling slightly more than capacity is that the average utilisation of all ships sailing from Asia to the Mediterranean decreased from 91 per cent in August to 88 per cent in September, and then onto 87 per cent in October.
Containerised cargo from the Mediterranean back to Asia remained encouraging for ocean liners during September and October, reaching 176,000 TEU and 172,000 TEU respectively, compared the second quarter's monthly average of 175,000 TEU.
This brought the year-to-date increase up to a very healthy 12 per cent, with exports from the western Mediterranean growing by 7.3 per cent, and those from the eastern Mediterranean rising by 17 per cent.
According to Drewry, ocean carriers will continue to cancel sailings to match supply with demand over the winter season. Further service withdrawals are unlikely before the introduction of P3's new schedules in the second quarter of 2014 (regulatory approval assuming).
This means that, on average, the 13 sailings cancelled in November will have to be doubled to get average vessel utilisation up to 95 per cent, which appears to be ocean carriers comfort zone at present.
