Container rates collapse by 42%

Freight rates are at their cheapest level ever, according to the Drewry Container Freight Rate Insight report released in February. All-in rates from South China to Europe have collapsed by 42% since November, and the index covering European container imports went down by 69% year on year from US$3,935 to US$1,232 per 40-foot equivalent unit (feu) in January. Spot rates on the eastbound transpacific trades were also 32% lower than in 2008, when the price stood at US$1,785. Based on last year’s global container traffic of 152 million 20-foot equivalent unit (teu), media reports suggest that if these rates hold for the next months, ocean carriers could lose as much as US$68 billion in revenues. (February 27, 2009)