Intra-Asia Freight Plummets, Suggest China Slowdown and Impact on U.S.

 

Container shipping rates on intra-Asia trades have fallen to their lowest level in four years, according to the Container Freight Rate Insight which is updated weekly.

Drewry’s Intra-Asia Freight Rate Index fell 10% in the three months to January 2015 to reach $900 per 40ft, its lowest level since Drewry first started publishing the index in March 2011.

The index has depreciated 7% in the last 12 months. The Intra-Asia Freight Rate Index is a weighted average of spot container freight rates across multiple routes serving intra-Asian trades, excluding South Asia and Middle Eastern trades.

“Drewry’s Intra-Asia Freight Rate Index, which is typically stable, is now being impacted by the slowdown in the Chinese economy and cargo demand on these key trade lanes,” said Stijn Rubens, senior advisor at Drewry Supply Chain Advisors.

“Shipping lines have also been deploying larger ships and introducing new services, which has only increased the pressure on Intra-Asia freight rates.”

The collapse in intra-Asian pricing contrasts with a recovery in global container freight rates over the same period.

Category: General Update