Increased Space Availability Reduces Maritime Rates on Asia-Mexico Route
The maritime transport market between Asia and Mexico has undergone significant changes in recent months. According to Eternity Group Mexico’s EAX Index, vessel capacity has increased significantly, with an addition of approximately 20,000 TEU (20-foot containers) in weeks 12 and 14 of this year. This expansion in space availability has led to an 8.12% decrease in maritime rates for 40-foot containers in March, averaging at two thousand 106 dollars.
Despite this monthly decline, by the end of the first quarter, the average rate rose to two thousand 286 dollars per FEU. This represents a 50% increase compared to the same period last year. This rate hike is mainly due to the growth in space capacity, which increased by approximately 27% (+296 thousand additional TEU in 1Q24). This growth has been driven by the exportation of products such as lithium batteries, electric cars, e-commerce, and retail/fast fashion.
However, despite the increase in capacity, significant challenges persist in the market. High demand for space and limited container inventory in China pose significant logistical hurdles. This situation is exacerbated by delays in service rotation caused by geopolitical conflicts in the Red Sea, affecting the regular flow of goods.
Volatility in rates is expected to continue in the coming weeks. Carriers are considering raising short-term rates (FaK) to around four thousand 500 dollars per container in an attempt to capitalize on high demand. Given this scenario, companies are advised to engage in early planning for their import operations to mitigate the impact on logistical costs. Additionally, it is advisable not to speculate on logistical costs, especially in critical operations.
To read the full article: https://t21.com.mx/mayor-oferta-de-espacios-reduce-tarifa-maritima-asia-mexico/