| Looking across; Rates continue to slide as active fleet expands |
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An increase in the size of the active containership fleet is starting to have an impact on freight rates, with averages prices out of China falling for the last two months. According to analyst AXS Alphaliner, the active containership fleet has grown 19% over the last eight months, from 11.55 million teu at the start of the year to 13.8 million teu in August. And the extra capacity is causing rates to decline. Alphaliner said: “The rapid increase in capacity deployed has finally started to have an impact on container freight levels, with average rates out of China sliding by 6% in the last two months. “Carriers continue to add new capacity, with several new service introductions still to come in September, including two new transpacific and two transatlantic services. “The additional capacity comes in as a weaker-than-expected peak season has led to declining utilisation levels.” “Further rate declines are expected until the end of the year, with the benchmark Far East-Europe forward swap rates expected to fall a further 8% by early next year.” All the major carriers, except for NYK, deployed additional tonnage during the period, with MSC leading the market in terms of teu increases – it has brought in an extra 282,000teu - while CSAV’s active fleet has grown the most in percentage terms – up 61%. MSC is expected to receive up to 13 vessels of the 14,000 TEU class this year, of which eight have already been delivered, based on Alphaliner records. “MSC has been very active in adding chartered tonnage, taking advantage of low charter levels during the early part of this year,” Alphaliner said.The Shanghai Containerised Freight Index shows that rates declined again last week, with the overall index for 15 routes from Shanghai declining 27.7 points, compared to the week before, to 1485.90. Rates on services from Shanghai to Europe last week declined by US$24, compared to the week before, to reach $1,283 per TEU, while rates to the US West Coast dropped $60 to reach $2,692 per FEU. Rate to the Mediterranean dropped $11 to $1,808 per TEU and rates to the East Coast of the US were down $46 to $4,093 per FEU. Source: IFW, September 09, 2010 Remark: Maximum gross mass of a 20ft shipping container for dry cargo is 24,000 kg and for a 40 foot container, regardless of the height, is 30,480kg. The payload maximum is 21,600 kg for the 20ft container and 26,500 for the 40ft version. Before taking out your pocket calculator, the “per kilogram” rate from Shanghai to Europe in a TEU is $ 0,06, to the US West Coast in a FEU approx. $ 0,10. How can you compare this to airfreight rates ex SHA? Also bear in mind that a 14.000 TEU vessel can carry as much as 280.000 tons of freight – an equivalent of nearly 3.000 B747 full freighter flights! |
