The spot exchange rate between Asia and Europe has softened, and plans to cancel some flights

This week, the spot exchange rates from Asia to Northern Europe have fallen to their lowest levels since before the outbreak of COVID-19 in 2020. As European importers bear the burden of inflation and high inventories, carriers are unable to fill the deployed capacity on trade routes.

According to the GEP Global Supply Chain Volatility Index, destocking efforts in Europe and North America are being reversed as companies build up safety stock, partly due to the resurgence of COVID-19 infections in China and heightened concerns about future supply and pricing.

Due to the abundant container transportation capacity in the market, high inventory levels, and weak demand, shippers and their service providers have little incentive to sign fixed rate contracts with Asia-Europe carriers.

"Third-party logistics providers are evidently taking a tough stance with carriers, given the protracted delay in signing new agreements," he added. "Carriers are clearly eager to collaborate with bulk shippers capable of delivering stable and predictable cargo volumes."

Xeneta set the spot price for Asia-Europe this week at $1,995 per FEU, down 86% year-on-year and unchanged from $1,995 per FEU on January 1, 2020. Drewry's Asia-North Europe price this