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Rate-Capacity Nexus Report
A quarterly analysis of rates and capacity by ComPair Data and SeaIntelligence.com

  Declining freight rates are putting the liner carrier industry in a bind it vowed to avoid during the industry’s recovery in 2010. Rates on most key headhaul lanes are well below the high-water marks they hit in mid-2010 and a failure to manage capacity seems to be the root cause.
   ComPair Data examines the relationship between freight rates and capacity on trades to and from North America in a new quarterly report, Rate-Capacity Nexus. The report shows how allocated capacity – that is, the space ComPair Data estimates carriers allocate to specific trade lanes – moves quarterly in relation to freight rates.
   The rate and capacity data illuminates how the liner industry deviated from the strategy that worked so well in late 2009 and early 2010 – that is, pulling capacity on key lanes during the slack season and using slow steaming to absorb capacity arriving in the form of new vessel deliveries. While slow steaming has remained as a fixed component of carrier strategy, lines didn’t withdraw services or idle excess vessels to a large enough extent to maintain rate stability.

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© ComPair Data, Inc. 2011

Copyright 2011. The Rate-Capacity Nexus Report report is for the sole use of the registered user and is not to be copied or distributed outside his organization. Reproduction, scanning into an electronic retrieval system or copying to a database is strictly prohibited without written permission of the publisher. Violations will result in a requirement to pay damages to the publisher and owner of the Copyright, ComPair Data, Inc.  While information is presented in good faith, the publisher cannot accept liability for errors of fact or opinion.

 

 
 
 
 
 
 
 
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