Update 10 September 2013
The ‘Golden Week’ is approaching fast and following the shipping carriers largely failed attempts to push through a general rates increase in September they are now looking towards the shut down and expected surge in demand as an opportunity to get an increase in rates through this approach
Hapag-Lloyd has taken the lead in announcing a rate increase on the FE-Europe trade of $500/teu to take effect on 23 September, just one week before the start of the National Day ‘Golden Week’ holidays in China that begins from 1 October.
The carriers are hoping for a surge in cargo bookings ahead of the holiday period to push through with the rate increase. However, any surge in volumes will be short-lived, as Chinese factories will close for their week long holiday in early October which also coincides with the traditional start of the winter slack season.
Several carriers have already announced skipped sailings in early October in anticipation of the slowdown in Chinese exports to Europe.
A total of 8 China to North Europe sailings (out of 22 weekly sailings) are currently expected to be voided during the first two weeks of October.
Last year, the number of skipped sailings reached 14 on the China to North Europe trade route
Carriers have not yet announced any plans to cut capacity for the winter slack season this year. In 2012, Maersk, the G6 and CKYH carriers each withdrew one China to North Europe sailing in October.