Asia-Europe rates undermine container volume gains
The quantity of containers transported in the first half of 2019 from Asia to Europe is up a surprising 5.2 percent. Tariffs on trade between Asia and North Europe have been at loss-making rates for much of the year, and with surplus capacity maintaining downward pressure on prices, rising volume only expands these losses, according to the chief shipping analyst at BIMCO.
The quantity of containers transported from Asia to Europe in the first half of 2019 is up 5.2 percent year-over-year, which is what BIMCO's Peter Sand said was amazingly large considering Europe's slowing economies.
“Volume growth has been very strong, but Shanghai Containerized Freight Index [SCFI] spot rates from Shanghai to Europe have been loss-making most of the year, especially since March,” Sand told JOC.
The JOC Shipping & Logistics Pricing Hub, which monitors the SCFI's weekly spot rate movements, demonstrates that prices for Asia-North Europe are now nearly 14 percent below the $806 per TEU level reported last year at the same week.