January 14, 2010 // Transpacific cargo vessels crunched for space

Client alert

Transpacific ocean carriers have completed their winter deployment for 2010. The resulting loss of vessel space combined with the recent upsurge in cargo bookings is causing a severe space shortage, particularly to U.S. east coast ports.

We expect space to remain tight through Chinese New Year (Feb 14-21).

Winter deployment shown in Transpacific Eastbound Capacity [pdf] <Source: Drewry Shipping Consultants> indicates that vessel capacity has been reduced to 2004-05 levels. Carriers are not expected to put vessel strings back into service until late May or June.

If the economy remains strong with cargo bookings at current or increased levels, the current space crunch could become an ongoing issue throughout the first half of the year.

We will continue to work with our broad scope of carrier options to place cargo on outbound vessels wherever space can be accommodated.