The unrelenting decline in container freight rates from Asia, caused by a collapse in demand, is compelling ocean carriers to blank more sailings than ever before as vessel utilization hits new lows.<\/p>\n
Drewry\u2019s WCI Asia-North Europe component slumped a further 18% this week, to $2,192 per 40ft,<\/p>\n
and is down 75% since August. Rates from China to North European hub ports now being touted by forwarders sank below the watershed $1,500 per 40ft benchmark.<\/p>\n
\u201cWhat worries me is that if we pass on to our client a very low rate, he will do his sums based on those freight costs, and then suddenly the market pivots again and the carrier lumps-on some hefty GRIs or other surcharges,\u201d said the forwarder.<\/p>\n
Another UK-based forwarder is concerned about future instability in the liner industry if the market does not normalize at sustainable levels.\u00a0\u201cWe really wanted to see lower rates that are sustainable, but I fear the complete opposite is about to happen; too-low rates will not be sustainable and force a weaker liner to go \u2018pop\u2019,\u201d he said.<\/p>\n