Sponsored By

Intra-Asian container rates hit by fierce competition

Intense competition has hit freight rates in the intra-Asian container trades according to longstanding player Regional Container Lines (RCL).

Marcus Hand, Editor

November 13, 2019

1 Min Read
Kalyakan - stock.adobe.com

Releasing its third quarter results Bangkok-headquartered RCL said that Q3 the average freight rate had fallen by 15% year-on-year and by 7% compared to the previous quarter.

“Despite the difficult trade environment, intra-Asia trade demonstrates the most promising potential growth, drawing in many newcomers to gain market share. Hence, resulting in a strong competition in this quarter, depressing the freight immensely,” RCL said.

As a result RCL saw its Q3 revenues dip by 8% to THB4.14bn even though volumes were up 9% at 562,00 teu.

The regional line also expects to see costs increase as IMO 2020 comes into force. “In addition to the depressing trade atmosphere, a geopolitical tension in the Middle East and the enforcement of sulphur emission cap starting from the beginning of 2020 has posted a noticeable indication of a higher cost to the shipping lines,” the company said.

Read more about:

RCL

About the Author

Marcus Hand

Editor

Marcus Hand is the editor of Seatrade Maritime News and a dedicated maritime journalist with over two decades of experience covering the shipping industry in Asia.

Marcus is also an experienced industry commentator and has chaired many conferences and round tables. Before joining Seatrade at the beginning of 2010, Marcus worked for the shipping industry journal Lloyd's List for a decade and before that the Singapore Business Times covering shipping and aviation.

In November 2022, Marcus was announced as a member of the Board of Advisors to the Singapore Journal of Maritime Talent and Technology (SJMTT) to help bring together thought leadership around the key areas of talent and technology.

Marcus is the founder of the Seatrade Maritime Podcast that delivers commentary, opinions and conversations on shipping's most important topics.

Conferences & Webinars

Marcus Hand regularly moderates at international maritime events. Below you’ll find a list of selected past conferences and webinars.

Get the latest maritime news, analysis and more delivered to your inbox
Join 12,000+ members of the maritime community

You May Also Like