Shipping Outlook - costlier

Container shipping may get costlier

The spot rate for container shipping on the Asia-Europe route is likely to rise to US$2000 per TEU in two months as carriers plan to take out more capacity following the Chinese New Year due from the middle of this month, the Hindu Business Line reported.

The present rate is $1763 per TEU. The Asia-Europe route has been defined at the route between the Chinese ports of Shanghai, Ningbo and Shenzhen and the European ports of Antwerp, Rotterdam, Bremerhaven and Hamburg and the spot rate as the charge for transporting a 20-ft container plus all surcharges excluding the terminal handling charges.

At present, carriers are charging 18 surcharges including the peak season surcharges although it is over. Meanwhile, the Shanghai Containerised Freight Index recently surged 7.2 percent as spot rates on Asia-Europe and Asia-US routes went up considerably.

According to Paris-based consultancy Alphaliner, the world’s container fleet capacity decreased by 142,000 TEUs between the beginning of January and early February.

Source: Transport, Logistics and The Economy (Feb 8th)