Ocean freight rates on the Asia-South America route have reached an 18-month high, triggering a response from mainline operators. The article on The Loadstar reports that shipping lines are adding capacity and increasing service calls to meet surging demand.
Freight rates have climbed to around $4,350 per 40-foot container, prompting carriers like HMM to add another port of call (Rio Grande) to their Far East-India-Latin America (FIL) service. Existing service frequencies are also being maintained, with no reduction in calls to established ports like Buenos Aires and Montevideo.
While no new ports are being added to other services, the overall average weekly capacity on the route is increasing from 10,900 TEU (Twenty-foot Equivalent Unit) to 11,000 TEU. This signifies a growing focus on the Asia-South America trade lane, with container lines deploying larger vessels to capitalize on the high demand and freight rates.
Source: The Load Star