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Freight Rate

Asia to Northern Europe Shipping Rates Jump 177%

Photo by Maersk Line

 Asia to Northern Europe shipping freight rates for transporting containers jumped by 177.3 percent to $1.109 per 20-foot container (TEU) in the week ended on Friday, reports Reuters, quoting data from the Shanghai Shipping Exchange.   As all major container shipping lines implemented a price hike announced earlier, the  freight rates rose nearly three-fold.   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.   Maersk Line attempted to lift freight rates by $1,000 from Aug. 1.  It controls around one fifth of all transported containers from Asia to Europe.   In the week to Friday, container freight rates rose by 178.4 percent from Asia to ports in the Mediterranean, by 43.1 percent to ports on the U.S. West Coast and were up 20.2 percent to ports on the U.S. East Coast.  


Mediterranean/N.American Freight Rate Stagnancy

Image credit APM

Ocean carriers were unable to increase freight rates between the Mediterranean and North America from November to January due to continuing poor vessel utilisation and the approaching threat of P3, according to the latest edition of Drewry's Container Insight Weekly. Westbound According to Drewry’s Container Freight Rate Insight, the average all-in freight rate quoted to forwarders for spot cargo from Genoa to New York remained a poor $1,950/40ft throughout.


Index-Linked Container Contracts Take-Off

Half of all index-linked contracts filed with the US Federal Maritime Commission reference Drewry’s Container Freight Rate Insight pricing benchmarks.   Drewry Maritime Research’s container freight rate benchmarks are the index of choice in index-linked container contracts, according to the US Federal Maritime Commission (FMC). The agency also indicated that uptake of index-linked container contracts on US trades was fast growing


Asia-N.Europe Box Rates Hit 6-Year Low

file photo

Shipping freight rates for transporting containers from ports in Asia to Northern Europe fell 23 percent to $342 per 20-foot container (TEU) in the week ended on Friday, a source with access to Shanghai Containerized Freight Index data told Reuters. Freight rates on the world's busiest trade route are now at the lowest level since the index began in 2009 and have more than halved this month. Overcapacity of vessels and sluggish trade are behind the fall.


Asia-Europe Box Rates Slip 10 pct Last Week

A Maersk containership loading at berth (File image)

Freight rates for shipping containers from Asia to northern Europe fell 10 percent to $233 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 fifth consecutive week of falling freight rates on the world's busiest route. Rates are at their lowest since June 19, and widely seen as at loss-making levels. Rates dropped 20 percent from Asia to ports in the Mediterranean


Global Shipping in Doldrums

Photo: Maersk Line

 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


Freight Rate Trends: Upcoming Free Supply Chain Webinar

Image courtesy of Drewry

Drewry Maritime Research says it is hosting a free webinar for supply chain professionals to explain recent trends in ocean & air freight rates and provide an outlook for the future. The webinar presentation will examine and explain: Recent ocean & air freight rate trends on Global trades Economic drivers Drewry's outlook for freight rates The event will be hosted by Simon Heaney, Senior Manager, and Philip Damas


BIMCO: Bulk Market Awaits Freight Rates Lift

Photo courtesy of BIMCO

Dry Bulk Shipping: All eyes on Brazilian iron ore exports, as we await the long-anticipated lift in freight rates. Demand The freight market, which performed so well in Q1, has certainly not delivered in the past four months. BDI has dropped from 1,621 on March 20 to hit 747 on July 29. Panamax ships have not been above $10,000 per day since February 20, but below $5,000 per day for most of June and July. BIMCO expected challenging market conditions, also for Panamaxes, but rates below $4


Asia-Europe Box Rates Fall Again

File Image (Maersk)

Shipping freight rates for transporting containers from ports in Asia to Northern Europe fell by 13.9 percent to $469 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 current level is widely seen as loss-making to shipping companies.


Asia-N.Europe Box Rates Dive 13 pct

The CMA CGM Ben Franklin loads cargo alongside the pier (file image: Marad)

Shipping freight rates for transporting containers from ports in Asia to Northern Europe fell 13.1 percent to $636 per 20-foot container (TEU) in the week ended on Friday, a source with access to data from the Shanghai Containerized Freight Index told Reuters. The shipping industry has been battling overcapacity linked to a glut of new vessels ordered during a boom period before the global financial crisis of 2007-2009.


Drewry Warns BCOs to Adapt Their Contract Strategy

Image: Drewry Shipping Consultants Limited

 International transport and logistics executives using container shipping are facing the biggest shift in their ocean provider base for 20 years and must adapt their procurement and contract strategy, according to ocean freight procurement consultancy Drewry Supply Chain Advisors.  


More Cargo, Slower Steaming Support VLCC Rates

File Image (CREDIT: AdobeStock / (c) Carabay)

VLCC rates from MidEast to Asia gain around $3,000; higher chartering volumes for peak winter season could lift rates.   Freight rates for very large crude carriers (VLCCs) on Asian routes may have found a floor this week as a combination of increased chartering activity and some tankers


Baltic Index Hits near 3-year High

© Valentin Kundeus / Adobe Stock

The Baltic Exchange's main sea freight index, tracking rates for ships carrying dry bulk commodities, touched a near three-year high on Monday, supported by higher rates across all vessel segments.   The overall index, which factors in rates for capesize, panamax


Global BCOs Hit by Rising Contract Rates from Asia

Graph: Drewry Benchmarking Club

 Contract freight rates paid by Beneficial Cargo Owners to move their products by container have increased for a 4th consecutive quarter, according to actual contract rate data from the Drewry Benchmarking Club.   Average contract rates on two major container trade routes - from Asia


Tanker Shipping Rates to Remain Weak: Drewry

Graph: Drewry Shipping Consultants Limited

 Rising long haul exports of crude oil from the US and Nigeria will not be sufficient to push tanker shipping freight rates higher given lower anticipated Middle East output and surging tonnage supply, according to the latest edition of the Tanker Forecaster


Hyundai Merchant in the Red in Q2

Photo: Hyundai Merchant Marine Co Ltd

 South Korea's Hyundai Merchant Marine (HMM) suffered an operating deficit of USD 112 million in the second quarter, the company said in a regulatory filing. The third quarter will bring much better results, says the carrier.   Yonhap News Agency said that the company attributed


VLGC Asset Values to Fall in Sync with Freight Outlook: Drewry

Graph:  Drewry Shipping Consultants Limited

 Given the weak freight rate outlook for LPG shipping over the next twelve months, Drewry believes there is more downside risk to the second-hand values of very large gas carriers (VLGCs), according to the latest edition of the LPG Forecaster, published by global shipping consultancy Drewry.


Fog Lifts as Maersk CEO Remains Upbeat

File Image: The Madrid Maersk, one of Maersks largest boxships. CREDIT: Maersk

Container shipping fundamentals at best since 2010 - CEO.   Denmark's A.P. Moller Maersk gave an upbeat outlook for container shipping on Wednesday, lifting its shares by more than 4.5 percent as investors looked beyond one-off second-quarter charges.  


Maersk Reports Q2 Loss, Sees Cyber Attack Bill at $200-$300 Mln

Maersk Chief Executive Soren Skou (CREDIT: Maersk)

Danish shipping group A.P. Moller Maersk reported an unexpected net loss in the second quarter due to terminal and tanker impairment charges, but said it was upbeat on the container shipping outlook.   Maersk also said it expected a $200 million to $300 million bill from a June cyber attack


TEAM Sells Two Vessels in Q2

Image: Team Tankers International

 Team Tankers International Ltd. (TEAM) said that the company has agreed to sell the Tour Margaux (8,674 dwt, built 1993).    The transaction closed and the ship was delivered to the buyer in July.  The vessel is classified under Vessels Held for Sale as of June 30, 2017


Maersk to Face Price War

Photo: Maersk Line

 A.P. Moller-Maersk's main sea freight business faces the threat of a new price war in a consolidating industry, though the company has been fortified by the $7.5 billion sale of its oil and gas business to France's Total Reuters reported.  


St. Louis Region’s Agriculture Freight Network Poised for Growth

This 15-mile section of the Mighty Mississippi is being called the “Ag Coast” of America.

As cargo handling capacity increases along the Mississippi River, this 15-mile section of the Mighty Mississippi is being called the Ag Coast.   Located in the heartland of America, one 15-mile section of the Mississippi River in the St


Asia VLCC Rates Fall to Four-year Low

© Jose Gill / Adobe Stock

Freight rates for very large crude carriers (VLCCs) on Asian routes show little sign of reviving although Hurricane Harvey, which threatens to ravage the U.S. Gulf coast oil refining industry over the weekend, could provide a fillip, brokers said.  


Hapag-Lloyd UASC Complete Integration Soon

Image: Hapag-Lloyd

 In the first half of 2017, Hapag-Lloyd delivered a significantly better operating result and healthy volume growth. The merger with United Arab Shipping Company (UASC) on 24 May 2017 helped the Company to strengthen its market position and climb to fifth place among the world’s liner


DVB Bank Losses on Shipping

Photo: CMA CGM

 DVB, the specialist in international shipping finance, reported a consolidated net loss before taxes of EUR 506.3 million in the first six months of 2017 (previous year: net income of EUR 14.1 million).   Ralf Bedranowsky, CEO and Chairman of DVB Bank SE's Board of Managing Directors






 
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