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.

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