Tuesday, 13 January 2009

Asia-Europe spot box rates plunge to zero dollars


AS THE global financial crisis continues, Asia-Europe spot container freight rates have dropped to an unprecedented low of zero dollars, with cargo owners just paying for bunkers.

Industry sources in Singapore said there were a growing number of boxes being shipped from Asia to Europe at freight rate of zero dollars with lines merely charging bunkers and other surcharges on top.

Rates from South China to Europe have been offered at a freight rate of $0.00 plus bunker adjustment factor for sometime now.

Initially it would appear lines offered ‘all in rates’ which were similar in quantum but the lines involved could at least manage not to reduce the bunker adjustment factor when bunker prices fell further.

Spot box rates from North Asia are quoted at $200 all in, which leaves little, if any, real freight rate beyond fuel cost recovery.

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