Freight rates continued to tumble

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Freight rates have continued to tumble over the last few weeks, almost dipping below the US$1,000 per teu mark on the Asia to Europe trade.

Rates are now at their lowest point since September 2009. And with no capacity reductions yet announced by shipping lines, observers said planned rate increases were looking less and less likely.

There is still no news of any capacity adjustments by carriers on the Asia-Europe trade lane, which is making it extremely unlikely that the proposed general rate increases will be implemented.

Rates on Europe routes remain in freefall, with most services ex-China reported to be loading to only 85-98% utilisation, according to industry insiders.

Extra pressure has been placed on services last week, with a dramatic reduction in Japanese export cargo creating even greater space availability on vessels.

 

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