Alphaliner: Historically volatile container rates

2012 was a year in which the container market was plagued by overcapacity, leading to the most volatile freight rates in history, while charter rates were low, writes Alphaliner in an analysis.

Photo: Hyundai Merchant Marine

While the average freigh rates measured by China Containerized Freight Index (CCFI) rose to its highest level ever in May (1,336 points), and closed in 1,113 points, the charter rates for container ships remained at very low levels, writes Alphaliner in the analysis.

"Carriers were able to exercize some degree of market power, by raising average freight rates by 51 percent in several successful rounds of general rate increases in the first half of 2012 despite generally weak demand and poor load factors. However, their success was partly undone by renewed rate competition in the second half of the year as positive operating incomes spurred some carriers to revert to grabbing market share through rate cutting," writes Alphaliner.

Already a subscriber? Log in.

Read the whole article

Get access for 14 days for free.
No credit card is needed, and you will not be automatically signed up for a paid subscription after the free trial.

  • Access all locked articles
  • Receive our daily newsletters
  • Access our app
An error has occured. Please try again later.

Get full access for you and your coworkers.

Start a free company trial today

More from ShippingWatch

IKEA stops chartering container vessels

IKEA will no longer lease space on board container ships to have its products brought to shelves across the world, the global furniture group confirms. But the company is trying to avoid congested ports.

Related articles

Latest news

See all jobs