ShippingWatch

Container slump now also impacting contracts

Container freight contracts on the major east-west trades are now also being hit by the tough market. Rates have been reduced significantly since the beginning of the year, reports Drewry.

Photo: Hamborg Havn

Rates for container freight contracts on the east-west tradelanes have seen rates slide down since the beginning of the year, according to a new analysis from Drewry. As such, shipowners carrying goods on contracts are now also being hit by the downturn in the container market where carriers are struggling to turn a profit. On the other hand, this is good news for the customers, as they have been able to negotiate lower prices.

The data comes from a group of negotiators and manufacturers who follow rate developments for their contracts on routes between Asia and Europe and the Pacific. According to the index Drewry's Benxhmarking Club, to which shippers report developments, the rates have dropped seven percent between May and August this year, the sharpest decline since March 2014 when the data gathering commenced.

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

HHLA advances despite chaotic market

Port company Hamburger Hafen und Logistik has seen much progress this past half year despite ”major operational challenges” on a volatile market.

Borr Drilling seeks capital in the US

Tor Olav Trøim’s Borr Drilling searches for capital in the US and plans to issue shares on the New York Stock Exchange, a company statement reveals.

Further reading

Related articles

Latest news

See all jobs