World News
Box Carriers in $150/TEU Asia-Europe Rate War
Spot rates on the Asia-Europe route are reaching record lows, with some carriers competing with as little as $150 per TEU, an Alphaliner analysis reports.
Shippers have already scheduled another round of general rate increases set for July 1, 2015, however previous increases have thus far been ineffectual.
According to the the analysis, the widespread practice of voiding sailings in order to control freight rates has also yielded few results.
Carriers have reportedly cancelled 10 percent of all Far East to North Europe sailings during the first six months of this year, the highest rate of sailing cancellations ever recorded on the route.
Other shippers such as Maersk Line and Mediterranean Shipping Company S.A. (MSC), both of which make up the 2M alliance, have also reportedly made moves to reduce capacity.
However, experts say that the minimal capacity reduction is unlikely to have any large impact, especially as it would mean only a 1 percent reduction for the Far East-Europe trade.
It was reported early this week that rates have now fallen well below break-even levels, with some carriers losing money on every container shipped.
Key Bunker Prices More
| VLSFO | MGO | |||
|---|---|---|---|---|
| $/mt | +/- | $/mt | +/- | |
| Singapore | 596.50 | 0.50 | 688.00 | 1.00 |
| Rotterdam | 523.00 | 2.50 | 677.00 | 1.00 |
| Houston | 550.50 | 0.00 | 676.50 | 8.00 |
| Fujairah | 582.00 | 2.50 | 758.50 | 5.50 |
| Global 20 Ports Average | 599.50 | 0.50 | 757.50 | 2.00 |
| Global 4 Ports Average | 563.00 | 1.50 | 700.00 | 4.00 |
| Global Average Bunker Price | 644.50 | 1.50 | 813.50 | 0.50 |
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