Tag Archives: freight rates

Spot container rates skyrocket from Asia to Europe

What’s this about the huge rise in freight rates Shanghai to Europe and to the Mediterranean?

It’s a startling rise, but also note that the price Shanghai to the West Coast is much cheaper than Shanghai to the East Coast.

American Shipper

Since last week, rates from Shanghai to Northwest Europe and the Mediterranean increased by 328 percent and 298 percent, respectively.

Source: Spot container rates skyrocket from Asia to Europe | AS Daily Newsletter | AS Daily | American Shipper

How low can Container Freight rates go?

It seems that big ships may be setting off a price war.  Only the last carriers standing will survive these.  That’s those who can scrape out a minuscule profit over marginal cost.  At these prices carriers are not getting up to average cost, in all likelihood.

This post comes via Richard Ward on linkedin, from Freight Investor Services, a firm dealing in derivatives– futures, forward pricing, swaps and options,  and the like.

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Container Freight – how low can they go? – Freight Investor Services