Box Carriers Gaining from Oil Price Slump, Brexit and Robust Rates

Diana-Containerships

Today’s Shanghai Containerized Freight Index (SCFI) shows a marginal decline in spot rates to North Europe, but there was a jump in rates for the North American market, which is good news for ocean carriers just weeks before new annual transpacific contract negotiations commence.

The SCFI recorded a 0.9% fall in spot rates from Asia to North Europe to $970 per teu, while rates to Mediterranean ports were virtually flat at $978 per teu.

In the same week 12 months ago, spot rates on the two European lanes stood at $891 and $761 per teu respectively, for North Europe and the Mediterranean, suggesting there is a more robust market this year prior to the Chinese New Year, particularly for the Mediterranean.

However, the backhaul trade from North Europe to Asia continues to be depressed as a consequence of China’s restrictions on the import of waste paper and plastics.

Indeed, according to the latest reading from Drewry’s World Container Index (WCI), spot rates from Rotterdam to Shanghai are at a lowly $576 per 40ft, 34% below the level of a year ago.

George Griffiths, editor global container freight market at S&P Global Platts, said “concerns remain over Brexit” and with the 29 March deadline for leaving the European Union creeping closer, UK retailers were ensuring they had ample stock to overcome a possible period of disruption to supply chains.

“This has led to some stockpiling of goods by importers, potentially strengthening this route, and extending the Asia-UK’s premium over the Asia to North Continent lane,” said Mr Griffiths.

Moreover, it remains to be seen what impact the Ocean Alliance’s announcement this week of a revamp of its network from April, crucially including the addition of a seventh loop from Asia to North Europe, will have on forward bookings and freight rates.

Not only is the Ocean Alliance the largest of the three east-west vessel-sharing coalitions, but it is also arguably the strongest in terms of its partnership, given that the press release on the signing off of the new network in Hainan, China, yesterday was followed by confirmation that the cooperation had been extended until 2027.

Meanwhile, from Asia to the US east coast, the SCFI recorded a 4.8% uplift in spot rates to $3,187 per 40ft and for the US west coast an 11.6% surge to take rates on the route to $3,187 per 40ft.

“With Chinese New Year rapidly approaching, the clock is ticking on exports from China on both transpacific routes, lending some support to the all-inclusive rates,” said Mr Griffiths, “this comes alongside utilisation numbers in the high 90% regions.”

However, the outlook for the next few weeks looks less promising, with a sharp drop in rates expected in February as demand softens over the holiday period.

Despite the probable seasonal fall in rates the bottom line of carriers in Q1 will be boosted by the collapse of oil prices since October which has resulted in their bunker costs falling by over one third to around $350 per ton for heavy fuel oil.

Source: TheLoadstar.co.uk

LEAVE A COMMENT

Comments (47)

You should check this out…

Here are some totally unrelated sites to ours, on the other hand, just take a moment to visit …

Websites we think you should visit…

Sites of interest we’ve a link to…

Great websites from the internet…

Well written! Let me suggest you few interesting websites …

You should check this out…

Here are some absolutely unrelated web sites to ours, even so, just take a moment to visit …

You should check this out…

Here are some totally unrelated sites to ours, on the other hand, just take a moment to visit …

Sites we Like…

Here are some entirely unrelated internet websites to ours, even so, you can take a second and visit the website…

Sites we Like…

Here are some completely unrelated internet sites to ours, having said that, you can take a second and visit the website…

Read was interesting, stay in touch….

Well written!

Great websites from the internet…

Perfectly written! Let me suggest you some interesting websites …

Websites we think you should visit…

Sites of interest we have a link to…

Finding this site…

Wow, this post is good and very informative.

Wonderful story …

Here are several unrelated information, nevertheless truly worth taking a your time to visit this website

You must see this website …

We came across a cool web page which you could take pleasure in visiting …

Sites we Like…

Here are some totally unrelated websites to ours, nonetheless, just take a second and visit the website…

Wonderful story …

Here are a handful of unrelated information, nonetheless seriously really worth taking a your time to visit this website

Recent Blogroll …

You may take a second to stop by the content material from this websites we have linked to on this post…

Recent Blogroll …

You may take a second to take a look at the material from this web-sites we have linked to on this post…

You should check this out…

Here are some totally unrelated websites to ours, nevertheless, just take a second to visit …

Recent Blogroll …

You may take a second to visit the subject material from this web pages we have linked to on this post…

Wonderful story …

Here are a handful of unrelated data, nevertheless truly really worth taking a your time to visit this website

You should check this out…

Here are some entirely unrelated sites to ours, nonetheless, just take a second to visit …

Great websites from the internet…

Very well written! Let me suggest you this interesting websites …

Wonderful story …

Here are a couple of unrelated data, nevertheless really worth taking a your time to visit this website

Recent Blogroll …

You may take a second to check out the subject material from this web pages we have linked to on this post…

Great websites from the internet…

Very good written! Let me suggest you few interesting websites …

Finding this site…

Wow, this paragraph is nice and very informative.

Websites we think you should visit…

Sites of interest we’ve a link to…

Recent Blogroll …

You may take a second to stop by the subject material from this web pages we’ve linked to on this post…

Websites we think you should visit…

Sites of interest we have a link to…

Great websites from the internet…

Very good written! Let me suggest you this interesting websites …

Sites we Like…

Here are some absolutely unrelated sites to ours, nevertheless, i think you should take a second and visit the website…

Recent Blogroll …

You may take a second to take a look at the content material from this web sites we have linked to on this post…

Sites we Like…

Here are some completely unrelated sites to ours, having said that, you can take a second and visit the website…

Wonderful story …

Here are a couple of unrelated data, nevertheless seriously worth taking a your time to visit this website

Read was interesting, stay in touch….

Well written!

Websites we think you should visit…

Sites of interest we’ve a link to…

Wonderful story …

Here are several unrelated data, nevertheless truly really worth taking a your time to visit this website

Read was interesting, stay in touch….

Well written!

Just check this …

Just take a second to visit the internet sites we have linked to …

You should check this out…

Here are some completely unrelated web-sites to ours, nonetheless, just take a second to visit …

Wonderful story …

Here are a couple of unrelated information, nevertheless really worth taking a your time to visit this website

Finding this site…

Wow, this article is good and very informative.

Wonderful story …

Here are a number of unrelated data, nonetheless definitely really worth taking a your time to visit this website

Wonderful story …

Here are a couple of unrelated information, nonetheless genuinely really worth taking a your time to visit this website

Great websites from the internet…

Very good written! Let me suggest you this interesting websites …

Recent Blogroll …

You may take a second to check out the subject material from this web-sites we have linked to on this post…

Recent Blogroll …

You may take a second to take a look at the content material from this web sites we’ve linked to on this post…

×

Comments are closed.