Drewry: Box Shipping Rates Fall as East-West Price War Rages On

Image Courtesy: MSC

As the price war between container shipping companies persists, contract rates in the major East-West trade routes are expected to see at least a 30 percent decrease for new contracts starting from the second quarter, shipping consultancy Drewry said.

“The price war between carriers in the container shipping market continues and this is, for now, resulting in substantial reductions in contract rates for exporters and importers buying under contract,” said Philip Damas, head of the logistics practice of Drewry.

The number of companies in the Drewry benchmarking club has doubled in the year to May, as more companies “are realising both the tactical and the ongoing management value of benchmarking both costs and carrier service features,” Damas added.

While exporters and importers are enjoying big reductions in their ocean procurement costs this year, the next trend for shippers could be how to identify and work more with carriers who can maintain reliable service levels despite their revenue pressures and the risk of carrier or alliance service instability, according to Drewry.

Between February and May, Ocean freight rates for cargo moving under contracts on the major East-West trade routes fell by another 18%, while the average Transpacific and Asia-Europe contract freight rate declined by 29% in the year to May, as shippers secured big cuts in Asia-Europe annual contract rates and considerable reductions in their transpacific rates effective from May.

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Breakbulk Europe 2017

For more than a decade, Breakbulk Europe has served as the networking hub for industry professionals who do business in Europe — or would like to! Exhibitors and sponsors include cargo owners, ocean carriers, freight forwarders, ports/terminals, heavy haulers, equipment companies and more that are involved in this specialized industry.

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Ferries Asia Summit

Propelling Regional Waterway Connectivity & Fleet-wide Operational Excellence

Ferry travel is in the limelight. The potential for driving tourism growth is immense – and for archipelago nations battling with urban congestion, ferry services pose a clean, efficient alternative in everyday public transport. But high-profile ferry accidents have brought ever greater attention to safety regulations for Asia’s maritime travel industry.

Amid these circumstances, how can vessel operators cope with ever-tightening safety requirements, while making the right decisions at the right time to capture rising demand? What are the smartest ways to improve service reliability and fleet quality, that maximize operating and capital spend? What are the industry’s best-practices for sustainable growth, and how can they be achieved?

Play your part! Join us at the Ferries Asia Summit 2017 to push forward the regional debate on making Asia’s ferry industry more progressive, safe, and commercially sustainable. Bringing together fast-ferry, RO-RO and ROPAX vessel owners along with international and domestic maritime regulators, classification agencies, shipbuilders and naval architects, this event connects the entire value chain for a meaningful holistic debate on ferry operations excellence in Asia.

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Comprehensive debates on addressing the complexity of ferry safety in Asia: Is vessel age truly the greatest concern? How significant are other factors, and how can they be addressed?

Pathways to change through greater public-private collaboration

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Cost-efficient O&M strategies to extend vessel life & tips for stakeholder management to avoid purchasing mistakes

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INMEX Vietnam 2017

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Singapore Maritime Week 2017

Singapore Maritime Week (SMW) is the leading maritime event in Singapore. Driven by the Maritime and Port Authority of Singapore (MPA), SMW…

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