Drewry said its global freight index fell by 12% in April to reach its lowest level since February 2012. The index, which is a weighted average across 600 trades worldwide, reached a low of $2,065 per feu, having fallen 18% this year.
Spot rates on the Asia – Europe have taken a battering with mid-March general rate increases failing to make an impact. Last week according to the world container freight index benchmark rates on Shanghai – Rotterdam were just $1,335 per feu, the first time it has dropped below $1,400 per feu since February 2012.
“Drewry believes that until carriers take the necessary action to correct capacity, freight rates will remain under pressure,” said Martin Dixon, research manager for freight rate benchmarking at Drewry. “We reiterate our view that carriers will need to remove at least two service strings from the Asia-Europe trade for rates to recover.”
Meanwhile the cascading of tonnage from the East – West trades to the North – South and regional trades is depressing rates on these previously buoyant routes.
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