Container spot rates likely to increase with congestion

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The Red Sea crisis and port congestion are driving up the number of blank sailings.  According to Container News the idle container vessel capacity was very low at 0.9% in April. On the Asia-North Europe route, the blanked capacity nearly doubled from March to April, from a -12% blank share to -21% while on the Transpacific, capacity reduction of -14% to the West Coast and -11% to the East Coast were reported for the same.  Alan Murphy, CEO of Sea-Intelligence concluded that there is sufficient capacity to divert vessels around Africa, but not enough additional slack to deal with other major disruptions. Port congestion therefore needs to be brought under control, or spot rates could escalate event further, and quite quickly.

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