Uncertain outlook for Asia-Europe tyre shipments: MCS

Asia-Europe container transportation rates are currently at a deep low (see graph), but the obvious price benefit to importers of tyres from South-East Asia is mitigated somewhat by volatility in shipping conditions, which affects punctuality and reliability of tyres’ delivery. Shipping lines’ over-estimation of the market potential has led to artificial capacity restrictions used to mitigate over-capacity, and in some cases, cancelled shippings. With these factors fundamental to UK tyre wholesale, Tyres & Accessories asked freight forwarder Maritime Cargo Services partner Rob Shelley about the issues currently at play in this market.