Freight rates out of Asia have dropped to levels not seen since September 2009, while overcapacity could stymie efforts by carriers to bring about an increase.
According to a report on the IFW website the Shanghai Containerised Freight Index listed a decline in rates on the city’s four main global trade routes, with prices slumping to a 16-month low.
Rates from Shanghai to Europe, the Mediterranean and both the east and west coasts of the US, have fallen and are not expected to pick up again until peak season begins in July.
According to the website rates to Europe had fallen by US$68 to US$1,076 per TEU at the end of last week, compared to the previous week, while rates over the same period to the Mediterranean declined by US$40 to US$1,042 per TEU.
Rates to the west coast of the US fell by US$83 to $1,654 per FEU, while rates to the east cost declined by 94 per cent to US$2,862 per FEU.
Analyst AXS Alphaliner told the website current forward rates would be 30 per cent lower on South East Asian routes and 15 per cent lower on the transpacific routes than last year.
“The planned general rate increase on the Far East-Europe trade in April is expected to have only a moderate impact and carriers will have to wait until the peak season is in full swing, in July, before seeing any significant rate recovery.”
AXS Alphaliner predicts capacity on transpacific routes could increase by 14 per cent, compared to a global fleet growth estimated at 8.7 per cent.
“Despite the carrier’s predictions that the effective capacity growth in 2011 will be mitigated by the impact of delays in vessel delieveries, additional slow-steaming and container shortages, these factors are not expected to have a significant impact on overall supply growth.
“A large part of the capacity due to be delivered this year has already been delayed from the last two years,” the analyst warned.
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