as it is difficult to balance the relationship between excess capacity and the current sluggish demand, shipping companies on indian-us routes, after recently showing some signs of recovery, have inevitably adopted the increase of blank voyages or invalid calls to maintain freight rates.
Indamex 2, consisting of nine ships, is jointly operated by Hapg-Lloiter and Dafei Shipping Company. The capacity of the Indamex 2 (India-US East Coast) series will be reduced by 50% in September. This month, there are only two ships bound for India, CSL Manhattan and CMA CGM Musset respectively. According to data obtained from local ports, the weekly round-trip route is touted as the fastest connecting western India and the east coast of the United States, with stops in India at Nhava Sheva (JNPT) and Mundra.
U.S. industrial packaging manufacturer Procon Pacific's global supply chain director Daniel Krassenstein said that due to the supply and demand gap is huge, India shipped to the east coast of the cargo volume is not strong, the carrier's ability to improve freight rates undeniably from cutting available capacity.
As the operator delivers new vessels to its global fleet, Alan Murphy, CEO and founder of Sea-Intelligence Maritime Analysis, said capacity is expected to increase by 25% on the U.S. West Coast and 35% on the East Coast in the coming months. In order to prevent the collapse of freight rates, trans-Pacific airlines will also reduce the effective capacity through "a large number of blank flights".
According to data from PIERS, a sister product of S & P Global's "Business Magazine", by the first eight months of 2023, U.S. imports from Asia will fall by 21.1 percent from the same period last year. Imports were 1.49 million TEUs in August, up from July's 1.45 million TEUs, but still down 13.1 percent.
On September 1, Mediterranean Shipping Company and Dafei Group imposed a peak season surcharge of 350 US dollars on each container, while Hapg-Lloyd imposed a GRI notice of 200 US dollars on each container.
Due to the recent wave of general freight rate increase (GRI) attempts, the average contract price of India-US East Coast cargo has increased. According to reports, TEU orders to New York in August increased by 25%.
Spot prices from India to the U.S. East Coast have risen about 7 percent in the past three weeks, from Aug. 25 per FEU of $1780 to Sept. 14 per FEU of $1900.
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