News

Spot Rates Ease in Asia-Europe Container Trades

12.05.2012

 

 
Average spot rates in the Asia-Europe trades eased on May 10 after their 19 percent jump last week following carriers’ general rate increase on May 1.
 
The World Container Index of spot prices in the trade fromShanghai to Rotterdam, which is compiled by Drewry and the Cleartrade Exchange in Singapore, fell 4.4 percent to $3,708 per 40-foot equivalent unit from $3,878 per FEU on May 3.
 
Carriers in the key Asia-Europe head-haul trade had announced GRIs of about $400 per TEU (or $800 per FEU) as of May 1.
 
Carriers have been able to hold on to most of the four large GRIs they put into effect since the beginning of the year, because they have kept vessel capacity relatively tight. However, now spot rates may begin to ease as idle capacity returns to the trade and newly delivered ships are deployed.
 
Alphaliner said Wednesday that rates in the Asia-Europe trade appear to have peakedafter a nearly fourfold increase since December.
 
Deliveries of new ships in the first four months of the year, together with the return of idle capacity, have added 280,000 TEUs of capacity to the trade.
  The Journal of Commerce Online ... Read more

Trans-Pacific Carriers Plan Westbound Rate Hikes

09.05.2012

 

 
Trans-Pacific carriers announced proposed rate increases of $300 to $400 per 40-foot container unit, effective July 1, on shipments of frozen and chilled beef, pork and poultry shipments exported from theU.S. to Asia.
 
The Westbound Transpacific Stabilization Agreement, a discussion group of 10 carriers, announced the non-binding rate guidelines for the so-called protein cargoes.
 
Protein shipments moving from West Coast ports to Asia would take a $300 per FEU increase, while intermodal shipments and cargoes moving via all-water services from East Coast ports to Asia would take a $400 increase if the carriers implement the proposed rate hikes. Also, rates for hides would increase $100 from all locations.
 
The WTSA is a discussion agreement. It has no enforcement powers and its guidelines are voluntary, but the WTSA announcements generally reflect market conditions in the westbound Pacific trade.
 
Brian Conrad, WTSA executive administrator, said Asian demand for chilled and frozen meat is strong. Also, the westbound Pacific is competing with other trade lanes for a limited supply of refrigerated equipment, especially temperature-controlled containers for carrying chilled products.
Frozen and chilled meat products normally move under 12-month contracts that run from July 1 through June 30 of the next year, Conrad said.
  The Journal of Commerce Online ... Read more

Idle Container Ship Capacity Falls by a Third

03.05.2012

 

 
Container lines have started reactivating their idle container fleets for the summer peak shipping season, which has resulted in a decline of almost a third in idle container ship capacity, according to Alphaliner.
 
The decline in the idle fleet in the last month has added vessel capacity equivalent of 293,000 20-foot equivalent units to global trade lanes, which could slow or erode the increases in freight rates to and from China. Rates on lanes connecting to China have increased by an average of 38 percent on the China Containerized Freight Index since January, Alphaliner said.
 
The capacity of the idle container fleet, which stood at 913,000 TEUs in mid-March, fell 32 percent to 620,000 TEUs at the end of April. New services scheduled for launch in the next three months are expected to bring the idle fleet below 350,000 TEUs by July.
 
The reduction of the idle fleet provides some relief for the charter market, which has suffered from depressed rates for most of the last three years. However, the container ship fleet will not return to full employment anytime soon, since the delivery of new vessel capacity is expected to push idle figures up again by the end of the year.
 
Alphaliner said the current downturn is unprecedented in both duration and intensity. According to historical container ship idling data compiled by the French analyst, the container ship fleet enjoyed close to full employment prior... ... Read more