Steep Decline in Asia-Europe Spot Rates

vessel

source: www.seatrade-maritime.com

Spot freight rates from ports in Asia to Europe fell by 24.4% with $932 TEU, according to data from Shanghai Shipping Exchange. The containers, carrying goods that include TV’s to sportswear, made more loss than profit in the year before.

“Insufficient measures to reduce ship capacity will lead to an acceleration of freight rate reductions and industry-wide losses in 2016,” warns shipping consultancy Drewry.

In the past 12 months, spot rates have fell to the lowest value in most major trade routes since the recession in 2009. Drewry predicts that carrier revenue will continue to slowly steep further this year.

Even the world’s biggest carrier, Maersk Line, reported a 61% decline in profit in the third quarter last November.

Reuters reports no relief for shipping companies is seen in the current year.

Sources:

UPDATE 1-Asia-Europe container freight rates drop sharply, Reuters

Asia-Europe Box Rates Down Sharply, Marine Link