Soaring Asia to Mediterranean freight rates might not last long as economic turmoil engulfs Turkey, Europe’s fifth largest importer of goods from Asia.
It has been hard going in the Asia to Europe trade lane this year, but for carriers there was at least small consolation in the early months that the weakness was largely confined to the North Europe region as Mediterranean imports from Asia surged ahead by nearly 7% in the first quarter. Unfortunately, that malaise has now spread with the Med barely showing any growth in the second quarter. The chances of an immediate upturn look slim as the economic crisis currently engulfing Turkey will remove a significant chunk of demand.
