World News
Maersk Line Considering More Emphasis on Spot Rates
Maersk Line is currently considering turning to spot freight rates as a way to help combat the financially devastating effect that plunging contract rates have had on the container shipping market, WorldMaritimeNews reports.
"In terms of the contract base, of course this is unfortunate, because the low rates coincide with the renegotiation of contracts," said Maersk Group CEO Nils S. Andersen.
"It is an irritant, but we will have to overcome it. Of course, the industry needs better rates for 2016."
“We have taken some steps also to reduce our contract coverage a bit," he added, and that if the present rate level means that profitable contracts aren't possible, the focus will turn to spot rates.
"But it is still early days and we will have to see how things develop."
Andersen was also clear to note that he expects the company to get past this period intact.
Maersk Group also recently lowered its guidance for Maersk Line and the wider group due to lower-than-expected freight rates.
Earlier this year, Ship & Bunker also reported that Maersk Line CEO Soren Skou had spoken in favour of more consolidation in the container shipping segment as a way to address low rates and overcapacity.
Key Bunker Prices More
| VLSFO | MGO | |||
|---|---|---|---|---|
| $/mt | +/- | $/mt | +/- | |
| Singapore | 511.00 | 6.50 | 590.50 | 2.00 |
| Rotterdam | 451.00 | 7.00 | 597.00 | 8.00 |
| Houston | 450.50 | 4.50 | 602.50 | 14.50 |
| Fujairah | 498.00 | 3.50 | 710.00 | 3.00 |
| Global 20 Ports Average | 526.00 | 6.50 | 700.50 | 6.50 |
| Global 4 Ports Average | 477.50 | 5.50 | 625.00 | 6.00 |
| Global Average Bunker Price | 564.50 | 3.50 | 747.50 | 2.00 |
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