Asia-Europe Container Freight Rates Have Fallen Off a Cliff

COPENHAGEN, Aug 21 (Reuters) – Shipping freight charges for transporting containers from ports in Asia to Northern Europe fell by 26.7 % to $469 per 20-foot container (TEU) within the week ended on Friday, one supply with entry to knowledge from the Shanghai Containerized Freight Index advised Reuters.

It was the third consecutive week of falling freight charges on the world’s busiest route and charges at the moment are practically 60 % decrease than three weeks in the past.

Freight charges on the world’s busiest transport route have tanked this 12 months as a result of overcapacity in accessible vessels and sluggish demand in items to be transported. Rates usually deemed worthwhile for transport corporations on the route are at about $800-$1,000 per TEU.

In the week to Friday, container freight charges dropped 32.1 % from Asia to ports within the Mediterranean, fell 7.9 % to ports on the U.S. West Coast and had been down 9.9 % to ports on the U.S. East Coast.

The world’s largest container transport firm, Maersk Line, plans to boost spot freight charges by $1,000 from ports in Asia to ports in northern Europe, with impact from Sep 1. Other main container transport corporations have related plans. (Reporting by Ole Mikkelsen; enhancing by Sabina Zawadzki)

(c) Copyright Thomson Reuters 2015.