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Alphaliner: Destructive container price war hits new low

The price war on container freight between Asia and Europa is intensifying, and carriers are right now down to offering USD 150 for a 20-foot container, reports Alphaliner. The carriers' attempts at escaping this slump are wholly inadequate.

Container carriers are right now engaged in an intense fight to fill their ships on journeys between Asia and Europe. Some carriers are prepared to go far below break-even, offering as little as USD 150 to transport a 20-foot container, teu, from Shanghai to North Europe, reports analyst agency Alphaliner, describing the current situation as a damaging rate war.

The spot rates are already hovering below break-even, and late last week the SCFI spot rate index between Shanghai and North Europe dipped to an all-time low of USD 243 per teu - and it is far from unlikely that the rates will slide even further, which is why numerous analysts do not hesitate to say that a de-facto price war is raging on Asia-Europe. A price war that container carriers seem unable to escape in spite of their attempts at changing the situation.

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