New ConTex has the summer blues

(27.07.2018) The New ConTex index decreased -4 ponits (-0.8%) last week. Following the good demand conditions, the index was on the rise since Q1-2017 and peaked on 26 June 2018 at 536 points. Afterwards, the New ConTex started to decrease with the beginning of the quiet summer months, but also in tandem with an escalating trade conflict between USA and China and decreasing economic sentiment indicators for the Euro Area and advanced economies. Month-to-Month, the index decreased by 3.4% from its peak end June. Regarding a longer perspective, the index is still strong and increased 36.6% Year-on-Year (from 380 points on 25th July 2017).

The 1100 TEU segment saw the strongest decrease last week with -1.9% (-$155). Month-on-Month numbers also show that it have been especially the Feeder segments that came under pressure. The 1100 TEU and the 1700 TEU segment decreased around -4.4% since 26th June 2018. It is also the 1100 TEU segment that saw the "slightest" increase Year-on-Year (27.7% since 25 July 2017).

These numbers are supported by the current idle statistic. Since June 2018, the number of total idle container vessels increased from 85 to 122. The strongest increase could also be followed for the Feeder segments. A fresh wind for the market can be expected as the first autumn requirements arrive.