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General Rate News

16 Feb 2024

Red Sea: Far East-US Spiraling Ocean Freight Rates Set for Decline

Š MAGNIFIER / Adobe Stock

Spiraling ocean freight rates from the Far East to the United States, caused by the Red Sea crisis, may have peaked, with some relief on the horizon emerging for the shippers, according to the latest analysis from Xeneta, and ocean and air freight rate benchmarking and market analytics platform.The latest data released by Xeneta indicates a peak may have been reached after spot rates from the Far East into the US declined slightly since the last round of General Rate Increases (GRIs) were implemented at the start of February.Into the US East Coast…

20 May 2020

China to Europe Container Spot Rates in Rare Reversal -BIMCO

Š urbans78 / Adobe Stock

Throughout April, container shipping spot freight rates on the back-haul trade from North Europe to China were higher than those on the front-haul trade from China to North Europe. This is a rare occurrence that has developed in the wake of the massive supply chain disruptions in the world’s top manufacturing hub due to the COVID-19 outbreak, causing aftershocks across the Far East.“A reversal of front-haul and back-haul spot freight rates is a rare event. Especially on a high-volume main trade route like the Far East to Europe…

21 Feb 2018

Container Fleets & Demand Growing in Step -BIMCO

Š Mihai Andritoiu / Adobe Stock

For 2018, the world containership fleet is expected to grow in step with global demand, according to BIMCO’s latest container shipping market outlook. Having experienced falling freight rates from August to year-end in 2017, most liner companies were successful in pushing rates higher in early January 2018. Most of them managed to hold onto most of the gains they achieved, considering October and November were challenging in terms of very low demand growth. The weak demand came from the Far East to Europe trade, and on the Intra-Asian transport.

22 Feb 2016

Container Freight Market Hit by Exceptionally Weak Demand

The latest Container Shipping Forecaster from Maritime Strategies International reports ‘flickers of improvement’ in February after an opening to the year which saw 1.3m teu of capacity idle, freight rates struggling and the charter market on its knees. Having suffered a torrid end to 2015, liner companies finally managed to produce some upwards movement in freight rates, albeit as a result of the slower erosion of the massive General Rate Increase imposed on January 1. As of mid-February freight rates on the China-North Europe route were assessed at $431/TEU by the Shanghai Shipping Exchange, a level suggesting little positive momentum.

18 Feb 2016

Maersk Announces Rate Increase

The world’s largest container shipping company Maersk Line said that it will increase the rate from north Europe to west central Asia by US$100 per TEU, $150 per FEU and 40-foot high cube from March 1. This will apply to shipments from Finland, Russia, Lithuania, Estonia, Latvia to Bahrain, Iraq, Jordan, Kuwait, Oman, Qatar, Saudi Arabia, UAE, Yemen, Bangladesh, India, Pakistan and Sri Lanka. Maersk Line would also change the way it announces price changes to its customers, following the European Union’s antitrust investigation into price collusion. Maersk also issued another general rate increase (GRI) adding US$100 per TEU, $150 per FEU and 40-foot high cube from March 1 for shipments from Ireland…

17 Feb 2016

15 Carriers Agree to EU's GRI Modifications

15 container liner shipping companies have said they will stop publishing and communicating general rate increases (GRIs) that are expressed solely as an amount or percentage of the change, says the European Commission. Shipper representatives have welcomed an agreement by  the container lines to abandon GRIs in favour of a new pricing announcement mechanism following a two-year inquiry by the EU into possible competition infringements – alleged “price signalling” – by lines. The announcement grows out of an EC decision to open formal antitrust proceedings that investigate the practice of publishing GRI announcements and whether carriers engaged in concerted practices in breach of EU antitrust rules in November 2013.

11 Feb 2016

Shipping Firms Poised to Settle EU Probe

Fifteen container liner shipping companies "have offered to change their pricing practices to settle an EU antitrust probe and stave off possible fines," according to a report from Reuters Wednesday that cites two unnamed sources. Container carriers have offered to publish binding actual rates a month before they go into effect, according to the report from. The report said the European Commission would not confirm the development, but that it could change the practice of shipping companies announcing planned general rate increases. World No. 1 container liner Maersk, MSC and 13 other peers have offered to publish actual prices rather than future rate increases to settle a two-year EU antitrust investigation. The other companies are No.

06 Jan 2016

Europe Set for Decline in Container Volume

The latest edition of Hackett's Global Port Tracker North Europe Trade Outlook predicts cargo volumes on the route may fall this year, with a decline of as much as 4% of total moves at ports in Northern Europe. It predicts declines in container volumes at European ports in the first half of 2016, with North Range ports projected to post a 5.2% year-on-year decrease. Meanwhile, the Institute of Shipping Economics and Logistics (ISL) noted that for January to November 2015, the year-on-year growth in major world ports was negative. European-bound imports are projected to fall 3.2 percent, while Northern Europe imports could decline by at least 4 percent…

05 Nov 2015

Global Shipping in Doldrums

Wells Fargo Securities says that headwinds face global shipping industry and the continued overcapacity means freight rate gains are less likely to stick. "Given the continued overcapacity headwinds and easing containerized trade demand, we believe these freight rate gains are less likely to stick, and we expect rates to remain under pressure as we approach the slack winter season, particularly following a muted peak season," says a report from Wells Fargo Securities, written by Michael Webber that appeared in the Forbes. Container Freight Rates Get Boost Amid November General Rate Increases, Will They Stick? Last week, the Shanghai Containerized Freight Index (SCFI) increased by 41.1% wk/wk (week-over-week) to $759/TEU (twenty foot equivalent unit)…

24 Aug 2015

World’s Dry Cargo Transport Rate Nosedives

The key shipping freight rates for transporting containers from ports in Asia to Northern Europe fell by 26.7 percent to $469 per 20-foot container (TEU), last Friday. It was the third consecutive week of falling freight rates on the world’s busiest route and rates are now nearly 60 percent lower than three weeks ago. As expected over the past few weeks carriers have announced their plans to prop up rates come September 1st with all major carriers insisting on a general rate increase of around $1,000 TEU. These significant rate declines can be explained by the latest figures from Alphaliner, which suggest that demand on Asia-North Europe declined 3.5% during the first half of the year, whilst capacity actually increased 3.4%.

07 Aug 2015

Asia-Europe Box Rates Plunge 25 pct

Shipping freight rates for transporting containers from ports in Asia to Northern Europe fell by 24.9 percent to $833 per 20-foot container (TEU) in the week ended on Friday, one source with access to data from the Shanghai Containerized Freight Index told Reuters. The drop came after the previous week's increase of 177 percent which was a result of most of the major container shipping companies implementing a general rate increase from Aug 1. Freight rates on the world's busiest shipping route have tanked this year due to overcapacity in available vessels and sluggish demand in goods to be transported. Rates generally deemed profitable for shipping companies on the route are at about $800-$1,000 per TEU.

08 May 2015

Asia-N.Europe Boxship Freight Rates Soar

Freight rates for the shipping of containers from Asia to Northern Europe jumped by 151 percent per 20-foot container (TEU) in the week ended on Friday, one source with access to data from the Shanghai Containerized Freight Index told Reuters. The rise reflects the general rate increases earlier announced by major container shipping companies. The increase in spot rates came after 13 consecutive weeks of falls on the world's busiest route. In the previous week rates stood at $343 per TEU - the lowest level since the index was launched in 2009. In the week to Friday, container freight rates rose 9.1 percent from Asia to ports in the Mediterranean, fell 7.6 percent to ports on the U.S. West Coast and fell 8.2 percent to ports on the U.S. East Coast.

07 Nov 2014

Asia-Europe Box Rates Drop 10 pct

Shipping freight rates for transporting containers from ports in Asia to Northern Europe fell by 10.4 percent to $1,175 per 20-foot container (TEU) in the week ended on Friday, one source with access to data from the Shanghai Containerized Freight Index told Reuters. The fall came after last week's jump of 88 percent on the world's busiest route. Container freight rates have so far increased in 12 weeks this year but fallen in 32 weeks. "Within just one week carriers have witnessed their most recent general rate increase erode by 22 percent, reflecting how ineffective such increases are at improving revenue streams in the medium or long term," wrote container derivative trader Richard Ward from Freight Investor Services in London.

10 Oct 2014

Asia-Europe Container Rates at One-Year Low

Container freight rates fell 10.2 percent on busy route; Maersk expects gradually declining rates. Freight rates for shipping containers from ports in Asia to Northern Europe fell 10.2 percent to $738 per 20-foot container (TEU) in the week ended on Friday, one source with access to data from the Shanghai Containerized Freight Index told Reuters. It was the fourth consecutive week of falling freight rates on the world's busiest route and the rate is the lowest since Oct. 25 last year. Container freight rates have increased in 11 weeks this year but fallen in 29 weeks. Nils Smedegaard Andersen, chief executive of A.P. Moller-Maersk which controls the world's biggest container shipping company, has warned that the industry will have to get used to gradually declining rates.

09 Sep 2014

GDP v TEU: DMR Analyses the Interplay

The strength of first-half 2014 container flows from Asia to Europe flies in the face of the macro-economic data coming out of Europe, says Drewry  Maritime Research (DMR) in their latest ‘Container Insight Weekly’, excerpted here. As highlighted in last week’s analysis by DMR of the Asia-North Europe trade, disappointing recent economic news coming out of Europe does not chime with the robust growth reported for some of the big ocean container markets. Eurozone GDP flat-lined in the second-quarter as its three largest economies; Germany, France and Italy all stuttered. Germany, which accounts for roughly one-third of the entire Eurozone economy…

19 Aug 2014

Asia–U.S. Container Lines to Introduce Freight Increase

The Transpacific Stabilization Agreement (TSA) informs that member container shipping lines are proposing an across-the board general rate increase (GRI) of at least US$600 per 40-foot container (FEU) to all destinations, effective September 1, 2014 Carriers had filed increases in their individual tariffs in late July and subsequently began notifying customers directly. TSA lines said the planned GRI follows strong cargo demand and high vessel utilization levels in recent months, which forward bookings suggest will continue through September. With equipment, inland transport and other cargo handling costs rising steadily, carriers see higher baseline rates going into 2015 as essential to maintaining adequate service levels over time.

02 Apr 2014

Container Industry Stuck in a Vicious Cycle

Photo: Maersk

The industry is stuck in a vicious cycle, Drewry reports – although new ships may give carriers lower slot costs, the supply/demand dynamics are out of kilter and freight rates remain very volatile. Drewry Maritime Research’s 1Q14 Container Forecaster report highlights that the industry remains in an extended down cycle. This is being accentuated and extended by the constant delivery of new ships. The global cascade is now hurting the balance of the north/south trades. Some of…

24 Oct 2013

Maersk & New Containership Economics 101

(Images courtesy Maersk)

Capacity management is firmly on the minds of Maersk executives as the largest container ships in the world steam into service. Photographs of Maersk Line’s 18,000 TEU ships are flooding in from ports around the world as the carrier phases its giant new vessels phase into the AE10 string between Asia and North Europe. It’s a “Where’s Waldo” with maritime characteristics. Shanghai, Ningbo, Yantian, Hong Kong, Tanjung Pelepas, Rotterdam, Aarhus, Gdansk – the giant Triple-E Class…

15 Aug 2013

Maersk Line to Increase US Gulf/WCSA Freight Rate

Photo courtesy of Maersk Line

Maersk Line informs its customers it will be implementing a General Rate Increase (GRI) for dry cargo shipments from Houston, TX and New Orleans, LA to West Coast South America. All dry cargo shipments loading from Houston, TX and New Orleans, LA to Chile, Colombia, Peru, Ecuador and Bolivia will be increased by the following amounts and scope, with an effective date of September 16, 2013:     •    USD 150 per 20’ container     •    USD 150 per 40’ container     •    USD 150 per 45’ container (Colombia only)

08 Jul 2013

Where are Container Shipping Rates Going?

The market index for Asia to North-Europe is still on the decline, the average for a 20ft saw a 19% drop since 26th of May compared to the 26th of June reports Norwegian price comparison company Xeneta. The market average for a 40ft in Asia to North-Europe performed similar with a 20% decline in container shipping rates in the same period. The rate pressure is higher than ever with the announced general rate increase on July 1, where ocean carriers are attempting to push GRI’s up to $1000 per 20ft container – the highest increase ever. The rates are expected to rise from today’s levels, as the average prices for trade lanes like Shanghai to Rotterdam is as low as $877 per 20ft and $1,488 per 40ft, last tracked on the 26th of June.

27 Jun 2013

Container Shipping Rates Continue to Fall in June

The market index for Asia to North-Europe is still on the decline, and the average for a 20-foot saw a 19% drop since May 26 compared to the June 26 price comparison service for sea freight, Xeneta reported. The market average for a 40-foot in Asia to North Europe performed similar with a 20% decline in container shipping rates in the same period. The rate pressure is higher than ever with the announced general rate increase on July 1, where ocean carriers are attempting to push GRI’s up to $1,000 per 20-foot container – the highest increase ever.

12 Jun 2013

Maersk Hikes Rates on Two Trade Routes

Maersk Line has announced it will implement container General Rate Increases on its Transatlantic & Asia/US routes as follows: With effect from July 1, 2013, the Transatlantic trade between North Europe and North America  will be increased by US$200 per dry container. Maersk Line will also implement a General Rate Increase for the Middle East, India & Pakistan to United States and Canada trade lane with an effective date of July 3, 2013. Rate increase amounts are as follow for all dry cargo:     •    USD 300 per 20′     •    USD 400 per 40′ standard     •    USD 450 per 40’ highcube     •    USD 505 per 45’ The scope of the increase applies to all dry cargo from the Middle East, India & Pakistan regions to the United States and Virgin Islands(US) and Canada.

29 May 2013

Container Shipping Rates Continue to Plummet

Market average for 20ft container from Shanghai to Rotterdam (Photo: Xeneta)

Due to overcapacity & economic turmoil in the market, the market index for 40ft containers has taken a massive dip, 44% from May 2012. Xeneta, the price comparison service for sea freight, found that the average container freight rates from Asia to North-Europe continues to drop to $2,564 per 40-foot container and $1,341 per 20-foot. Due to overcapacity and various economic turmoil in the market, the market index for 40-foot has taken a massive dip with it being down 44 percent from May 2012.

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