LONDON's Drewry Shipping Consultants says shipping lines have been
largely success in making enormous freight rate increases - averaging
114 per cent - stick despite lingering overcapacity in the market.
Drewry's World Container Index's subcomponent for freight rates on Shanghai to Rotterdam trade jumped to US$2,732 per FEU from $1,276 a week earlier, Drewry told Bloomberg.
"Our view is that there'll be a reduction of spot rates next week, but container shipping lines have withdrawn enough capacity from the Asia-Europe trade to support some net rate increases over a fair period of time," said Drewry director Philip Damas. "We will need to see whether these rate increases will stay or erode over time."
Maersk Line, the world No 1 container shipping line, said increased rates were needed to restore profitability after the company lost $521 million last year. To bolster rates, Maersk has cut capacity nine per cent on its key Asia-Europe route.
Drewry's World Container Index's subcomponent for freight rates on Shanghai to Rotterdam trade jumped to US$2,732 per FEU from $1,276 a week earlier, Drewry told Bloomberg.
"Our view is that there'll be a reduction of spot rates next week, but container shipping lines have withdrawn enough capacity from the Asia-Europe trade to support some net rate increases over a fair period of time," said Drewry director Philip Damas. "We will need to see whether these rate increases will stay or erode over time."
Maersk Line, the world No 1 container shipping line, said increased rates were needed to restore profitability after the company lost $521 million last year. To bolster rates, Maersk has cut capacity nine per cent on its key Asia-Europe route.