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According to the last survey results for the APAC Forwarding Index, ocean volumes on the major East-West trades will continue to accelerate in the coming months.

After a solid start to 2017 which has seen ocean freight markets buoyed by healthy demand growth, May Index survey res[ds_preview]pondents predict further traffic expansion in the coming months. Over 40 % of respondents expect volumes to be higher in August than in May on ocean lanes to and from the APAC region, while a similar amount predict volumes will remain the same.

In keeping with the traditional peak season surge in Q3, two thirds of survey respondents forecast that APAC-Europe westbound volumes will be higher in August than they were in May. On the head-haul APAC-North America trade, 44 % also predict higher volumes over the same period, with only 11 % expecting box numbers to fall.

»We’ve had a solid start to 2017,« said one ocean liner respondent. »Exports from Asia have been strong and, after the normal May lull and on completion of Transpac contracting, we’d be surprised if we didn’t see a good peak season.«

Strong optimism for the summer months followed a solid May. 47.5 % of respondents reported higher Month-on-Month (M-o-M) volumes in May compared to April, while just 5 % reported ‘lower’ M-o-M volumes. M-o-M volume growth was also reported on all major ocean trades.

»The demand side of the picture has been strong thus far in 2017 as our latest survey has illustrated,« said Cathy Roberson of Mike King & Associates. Respondents are rightly optimistic that volumes of exports to North America and Europe will build in the coming months as the peak season gets underway.

Higher demand in Asia for European exports

»Exports out of the US continue to underperform, but Asian demand for European exports is ticking along and we expect this will continue at least through Q3. We expect lines will be able to consolidate most of their General Rate Increases if they keep their supply discipline as they smooth out network disruptions due to the start of the new Alliance services in April. We’d expect forwarders to seek higher margins on higher rates where possible,« Robertson added.

The survey and analysis is conducted monthly by consulting firms Mike King & Associates and Logistics Trends & Insights LLC.