Freight Rates About to Plunge Again

Freight rates are likely to fall further as carriers stand firm in their reluctance to reduce capacity on the Asia-Europe and transpacific trades in the winter slack season, Alphaliner warned.


The overcapacity-plagued market coupled with upcoming delivery of newbuilds are expected to exert further pressure on the rates.

According to Alphaliner,  60 new vessels capable of carrying 14,000 to 19,000 TEUs are due to be delivered starting from now through December 2015, mostly in the trades to and from northern Europe, further complicating already struggling spot rates.

The deliveries will push 8,000- to 13,000-TEU ships into the trans-Pacific, Latin America, Mediterranean and Middle East trades,” Alphaliner said, fueling the already overcapacity-stricken regions.

An additional 90 ships of 8,000 to 13,000 TEUs are scheduled for delivery during the same period.

What is more, attempts to restore market balance through vessel sharing agreements such as 2M and Ocean Three are also creating a sentiment of uncertainty.

Transpacific Stabilization Agreement (TSA) is recommending that its members seek to conclude 2015-16 contract rates, at levels at or above USD 2,000 per 40ft to the West Coast and USD 3,500 to the East Coast from all North Asia ports.

According to TSA executive administrator Brian Conrad “rates will continue to fluctuate with the market according to origin-destination pairs, service requirements, routing and so on, but a common base guideline is essential for lines to maintain basic service levels and, beyond that, expand their offerings based on customers’ needs.”

World Maritime News Staff, October 6, 2014



Share this article

Follow World Maritime News

In Depth>

Events>

<< May 2019 >>
MTWTFSS
29 30 1 2 3 4 5
6 7 8 9 10 11 12
13 14 15 16 17 18 19
20 21 22 23 24 25 26
27 28 29 30 31 1 2

GreenTech in Shipping USA Forum 2019

GreenTech in Shipping USA Forum is an event for Maritime leaders who want to unlock successful business formula of the industry!

read more >

CWC World Gas & Power Series – Brazil & the Americas Summit

CWC World Gas & Power Series: Brazil & the Americas Summit is the perfect meeting place to make contacts…

read more >

FPSO Brazil Congress 2019

Charging ahead with 24 planned orders by 2022, Brazil has once again solidified its status as one of the world’s foremost oil and gas leaders…

read more >

Nor-Shipping 2019

Nor-Shipping’s conference and event programme is tailored to deliver the knowledge, value and networking to help you build your business.

read more >