Freight Services Rates Facing Decline on Asia-Europe Route

Asia-Europe Shipping Rates of Freight Services drops due to Volume declines

CARGO SHIP

Due to the decrease in volume, the rates of the freight services also decreasing since 15 weeks. This declination also affected the revenue of the shipping companies. Carrier cargo services are feeling abandoned to wear away the revenue back again. The major factor behind the decrease of container spot rates was a decrease of head-haul volumes. On the other hand, golden week holiday of China has shown much impression on trades, reporting constant drops. Instantly after golden week holiday of China, airlines offering freight services from Shanghai Containerized Freight Index described more drop on two major trades of SCFI. It is recognized from a source that the spot rates of freight services between North Europe and Shanghai fell by 54 dollars this week, reporting 259 dollars per teu as an ultimate value. It is the smallest spot rate listed this year compared to all dropped values spot rates. On the other hand, the spot rates of Mediterranean ports decreased by 69 dollars and reporting 224 dollars per teu as a final value.

Asia to Europe

These records show that the latest GRI offered by Asia-Europe carrier companies in September has no effect on the spot rates of cargo services. It is observed that the GRIs of 1000 dollars, making the spot rates to rise for about two weeks at the start of the September, before showing the loss of increases and more while the rest of the month September. These records show that the carrier companies have planned to throw more GRIs in a range of 950 dollars to 1,200 dollars per teu, in between North Europe and Asia, which may come into result from November 2015.

CARGO TERMINAL

It is seen from Container Trade Statistics that volume more decreased by 6.7 percent in trades of Asia-Europe Shipping Rates as compared to past years. Even all the procedures taken for development like rise in capacity failed totally attaining traditional slack time of year. The chief executive of Maersk Line Soren Skou, stated that they are thoughtful to use further mechanisms in order to show soft demand and an obvious growth in volumes with additional tonnage. He further added that they are discerning to remove two or four major strings of the east-west side in the previous three months, along with a delay of freight services and withdrawal of sailings. The present condition of trades of Asia-Europe Shipping Rates shows that there will be a continuance in it, mostly in between Geneva and Copenhagen at least for future weeks.