English Arabic Armenian Azerbaijani Chinese (Simplified) Chinese (Traditional) Czech Danish Dutch Estonian Filipino Finnish French Galician Georgian German Greek Hindi Hungarian Icelandic Indonesian Italian Japanese Korean Latvian Lithuanian Malay Maltese Norwegian Persian Polish Portuguese Russian Slovak Slovenian Spanish Swedish Thai Turkish Ukrainian Vietnamese

US$321.00 for a box from Shanghai to Rotterdam?

OSLO: April 26, 2016. Price comparison site Xeneta says the competition between ocean box carriers is so fierce they no longer charge according to commodity type as they focus on just filling their vessels.

Xeneta argues that oversupply, better supply chain management and falling fuel costs have made the market so competitive over the last 18 months that box content is no longer relevant in negotiations with shippers.

The firm says the average price for a 40-foot container on a short-term contract from Shanghai to Rotterdam has fallen 78 percent between July 2014 and April 2016 to reach US$595.00. As at April 19, the lowest price on offer has dropped 82 percent to US$321.00.

COSCO GreeceXeneta CEO Patrik Berglund said: “In today’s market there’s too many boxes chasing too few cargoes. Traditionally, cargo was rated by weight or measure, with the ratings based on the cargo type.

“Calling a carrier or NVOCC’s rate desks for ocean freights was a painful experience, with negotiations based on cargo descriptions, packing, and cube - all designed to bring maximum revenue to the carrier.

“But now, as long as the box isn’t overweight - although even that isn’t always an issue these days - or filled with hazardous material, that’s all been pushed to the side. The carriers just want a full box, period.”

Berglund said the reason for the price slump is because slowdowns in the Chinese and EU economies have cut Chinese imports by 19 percent and exports by 13 percent over the past 18 months.

“When that’s married to the fact that 208 new ships were introduced to the market in 2015, boasting a capacity of 1.67 million TEUs, carriers have a major problem. Namely, a stunning 8.1 percent oversupply of TEU’s,” he declared.

Noting the possibility of a new alliance between COSCO, CSCL, Evergreen, OOCL and CMA CGM could challenge Maersk and MSC, he said the result could be a “perfect storm” to drive prices even lower.

“In this environment there’s rumors of rock bottom prices, with mentions of boxes booked for Qingdao – Rotterdam for as low as US$100, or even lower. So, at present, ‘what’s in the box’ isn’t the question, it’s ‘can we have your business please’?”

Xeneta’s shipping indexes comprise over 11 million contracted rates and covers 60,000 global trade routes.

News

Written on 25/07/2017, 20:14
dp-world-australia-wins-cosco-endorsementSYDNEY: July 25, 2017. DP World Australia has set up a logistics stevedoring subsidiary DP World Logistics Australia and full-service container park...
Written on 25/07/2017, 19:40
bollore-signs-new-cameroon-concessionKRIBI, Cameroon: July 25, 2017. CMA CGM and Bolloré Transport & Logistics have signed a 25-year concession to manage a new container terminal at the...
Written on 21/07/2017, 19:35
new-india-tax-will-mean-savings-say-expertsDELHI: July 21, 2017. The implementation of a new Goods and Services tax (GST) in India, as a replacement for a myriad of local and state levies, has...
Written on 20/07/2017, 22:27
america-s-largest-trade-gateway-aims-for-near-zero-emissionsSAN PEDRO BAY, CA: July 19, 2017. The ports of Los Angeles and Long Beach, America's two largest ports, have published a plan to reduce trucks and...
Written on 19/07/2017, 17:41
post-brexit-britain-to-rely-on-emerging-marketsBAAR, Switzerland: July 19, 2017. As Britain's Conservative government acknowledges the one-time cost of leaving the EU could be £66 billion, Agility...
Written on 18/07/2017, 18:26
politics-not-economics-key-to-inequality-says-researchBOSTON: July 17, 2017. Research by Oxfam suggests the poorest half of the world's population has received one percent of the total increase in global...
Written on 14/07/2017, 19:08
first-circular-economy-msc-launchedCRANFIELD, UK: July 14, 2017. Cranfield University is launching the world's first MSc course on the circular economy in October. The part-time...
Written on 14/07/2017, 16:23
delta-q2-cargo-revenue-upATLANTA: July 14, 2017. Delta Air Lines has reported a second quarter (Q2) 2017 net profit of US$1.22 billion on revenue of US$10.79 billion, compared...
Written on 13/07/2017, 19:28
100-companies-can-save-the-planetLONDON: July 10, 2017: New research from the Carbon Disclosure Project (CDP) reveals that 71 percent of all greenhouse gas emissions (GHGs) since 1998,...
Written on 12/07/2017, 18:29
turkey-continues-airlift-to-qatarISTANBUL: July 12, 2017. A report from Reuters says Turkey has sent 197 freighter aircraft, 16 trucks and one ship to Qatar since the political crisis...
Written on 09/07/2017, 20:51
emirates-airline-wins-on-waterAUCKLAND: July 06, 2017. Emirates Team New Zealand returned to a hero's welcome after winning the 35th America's Cup 7:1 against defending champion Oracle...
Written on 07/07/2017, 20:44
lufthansa-cargo-to-gain-from-eu-japan-dealBRUSSELS: July 06, 2017. On the eve of the G20 summit, the EU and Japan have sent a signal to protectionists by agreeing in principle to a deal covering...
Written on 07/07/2017, 19:39
british-business-calls-for-brexit-common-senseLONDON: July 07, 2017. The UK Confederation of British Industry (CBI) says in order to protect jobs and trade flows the UK should remain in the Single...
Written on 07/07/2017, 17:04
uk-customs-approves-cyber-attack-fail-safeLONDON: July 06, 2017. The British International Freight Association (BIFA) says it welcomes the UK government's decision to support 'CCS-UK Fallback', an...
Written on 07/07/2017, 15:44
africa-tops-airfreight-demand-in-mayGENEVA: July 05, 2017. IATA says the global airfreight market rose 12.7 percent in May compared to the same month last year, as capacity rose 5.2 percent...
Written on 06/07/2017, 20:51
flying-cheetah-drone-wins-amazon-competitionCAMBRIDGE, UK: July 05, 2017. 'Hannah M' from Ballymena, Northern Ireland has won the Amazon/UK Civil Aviation Authority (CAA) 'Design a Drone'...
Written on 30/06/2017, 21:01
ethiopian-airlines-makes-room-for-more-flowersADDIS ABABA: June 29, 2017. During the second ICAO Global Air Cargo Development Forum this week, Ethiopian Airlines opened its new air cargo terminal with...
Written on 29/06/2017, 22:17
facing-death-from-starvationHARGEISA, Somaliland: June 29, 2017: Save the Children says more than 20,000 children across nine districts in Somalia risk starving to death unless the...
Written on 29/06/2017, 20:13
uk-logistics-industry-threatenedTUNBRIDGE WELLS, UK: June 29, 2017. Britain's Freight Transport Association (FTA) has warned that without EU workers after 2019, the country's logistics...
Written on 26/06/2017, 21:45
making-the-best-of-an-ipoHANGZHOU, China: June 26, 2017. Best Inc., a logistics company backed by the Alibaba Group, has applied for a listing on the New York Stock Exchange and...

- powered by Quickchilli.com -