Saturday, 22.Jun.2013, 21:52 (GMT+3)
Drewry: CFRI reports global freight rates hitting 17-month low
Drewry’s recently launched Container Freight Rate website, shows that average global freight rates fell to a 17-month low in May. Drewry’s Global Freight Rate Index declined for the fourth consecutive month shedding 9% in May. While the bulk of the damage came from east-west routes and particularly westbound rates on the Asia Europe trade lane, weak load factors led rates to weaken on other major trade routes as well.For instance, spot rates from Far East Asia to East Coast South America, dropped notably in May, with Drewry’s South China-Brazil Freight Rate Benchmark falling 28% in May.
However, regional trades within Far East Asia bucked the downtrend experienced elsewhere. Drewry’s Intra-Asia Freight Rate Index remained stable in May at $942 for a 40ft. However this represented the lowest level the index has reached since March 2011.
Carriers’ failure to take the necessary corrective action to match capacity to weak demand through wider use of slow steaming or laying up ships is costing them dearly. But a new concerted effort to lift rates is likely to lift pricing.
Drewry’s Container Freight Rate Insight publishes freight rates online for over 600 international trade routes as well as several aggregated indexes. Market leading freight rate data is supported by updates on carrier GRIs, service changes and BAF surcharges, as well as in depth analysis of current and future freight rate trends.
The new Container Freight Rate insight website gives you the unrivalled ability to get up to date and accurate information on global freight rates. The information contained within the CFRI website is widely used for benchmarking, market analysis and as a reference point for index-linked contracts.
Source: Drewry
