Box Rates Slide to Historic Low, May Fall Further

by Ship & Bunker News Team
Thursday October 29, 2015

Alphaliner says that average container freight rates have fallen to a new record low, and warns that rates could continue downward as the slow winter season begins, World Maritime News reports.

Last week the China Containerised Freight Index (CCFI) fell to 752 points, the lowest level the index has seen since its first publication in 1998, and notably lower than the 763 points seen in 2009 during the global financial crisis.

Container freight rates are expected to remain low for at least the next two months.

Alphaliner says the impact of weak rates can be seen in the third quarter operational results of major carriers including Maersk Line, Orient Overseas Container Line (OOCL), and Hapag-Lloyd, all of which posted considerably lower average freight revenues.

Maersk Line reported that its rate average fell to $1,082 per TEU, a 19 percent drop compared to the same period last year, and a 4 percent drop from 2015's second quarter.

OOCL reported a 14 percent drop in it average rate compared to last year's third quarter, and a 4 percent drop from last quarter.

Hapag-Lloyd's average revenue during July and August is reported to have been 17 percent below 2014's third quarter, and 5 percent lower than their results for this year's second quarter.

As Ship & Bunker reported earlier this week, plummeting freight rates have forced Maersk Line to lower its full year guidance, which in turn forced Hapag-Lloyd to push back its IPO due to lost investor confidence.

In July, it was reported that data from the Shanghai Containerised Freight Index (SCFI) showed container freight spot rates on the Asia-Europe route had resumed a predictable slide after a short upswing.

Ship & Bunker News Team
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