The Asia-Europe container trade has entered a new peak season, with the shipping freight rates remaining firm amid tightening capacity, stable for cargo and the liner carriers' continued supply-side management.

Bookings for advance shipments have increased at major Asian export gateways, according to industry sources, by early stockpiling ahead of the summer sales cycle in Europe and the re-discharge of cargo affected by regulatory and cost uncertainties. This has helped the spot rates stay high despite some cautious sentiment in parts of Europe at a macroeconomic level.

The liner carriers have continued to manage capacity through blank sailings and route adjustments, which limited pressure of a sharp downward correction. Some port congestion, the extended transit time on certain routes and the continued diversion of services due to safety concerns further tightened the actual available and supported freight rates.

Some freight forwarders reported that high-value cargo, time-sensitive cargo and contract re-fixing cargo are pushing the spot market up, although not all commodities are in strong demand. As the peak season advances, shippers are also seeking rate protection amid concerns over a sudden surge in rates.

Looking ahead, industry analysts expect the rates to remain resilient throughout the peak season, although volatility is still inevitable should demand soften or carriers inject extra capacity. The shape of the peak season very much depend on the trend of consumption in Europe, the inventory situation and the pace of recovery in global trade in the coming months.

Currently, the AsiaEurope trade is showing new vitality, marking a significant change from the soft rate state earlier this year.