Increased competition and vessel cascading on intra-Asia trades has led to rock-bottom freight rates and plunging profits for regional carriers.
Charlie Chu, executive vice president of Thai-based intra-Asia specialist Regional Container Line (RCL), said freight rates were declining every year.
“Ship upsizing in intra-Asia trade is quite popular, same as other trades globally,” he told The Loadstar.
“The consolidation between large carriers through M&A and alliances means they can easily launch...
Container Rates
Amid Freefall in Spot Rates, Maersk To Introduce Environmental Fuel Fee!
- The SCFI and container spot rates recorded further rate declines for Europe and the US – 5.1%, to $674 per teu.
- Mediterranean ports and carriers who introduced FAK increases, the index recorded a 5.8% drop, to $826 per teu.
- The rates 38% and 28% are below the level of 12 months ago for the west and east coast ports when tariff-hedging front-loading by shippers spiked the market.
- Maersk has planned to introduce EEF on all sectors from December 1, 2019, onwards.
According to an article published...
http://mfame.guru/amid-freefall-in-spot-rates-maersk-to-introduce-environmental-fuel-fee/
Carriers ditch constant chase for market share in a quest for profits
Zim’s return to the black in Q2, the carrier’s first net profit since Q317, confirms a trend of container lines giving up their chase for market share in favour of profitability, according to analyst Lars Jensen.
“Zim has followed the path of trading lower market share for improved yield,” he said.
The Israeli carrier posted a Q2 net profit of $5m, despite a year-on-year volume decrease of 5.3%. But its liftings consisted …
The post Carriers ditch constant chase for market share in a quest for...
https://theloadstar.com/carriers-ditch-constant-chase-for-market-share-in-a-quest-for-profits/