Malaysia’s container shipping freight rates have returned to near pre-crisis levels, driven by a combination of demand and shortage of container equipment, Cargonews Asia reports citing CMA-CGM Malaysia managing director Simon Whitelaw’s interview with Business Times While recently there have been reports saying that shipping lines have been raising rates indiscriminately for cargo moving from Asia to Europe, shipping lines insist that it is part of a rate restoration program, following a recovery in the global economy.
Freight rates on the Asia-Europe trade route fell to US$250 a TEU from a peak of $2,000 a box in 2008, as the global economy slowed.
Rates are currently hovering at between $1,750 and $1,780 per TEU.
Last year, the global container shipping industry lost more than $15 billion due to the slump in trade, overcapacity and price wars.
The shortage of containers for export and vessel capacity has also been a topic of concern of late. Unreplenished stock equipment and the scrapping of old containers have resulted in a shortage of container equipment.
The squeeze on capacity and equipment, combined with the willingness of Chinese shippers to pay more, have resulted in the principals of container lines allocating more container space to them and less to Malaysian shippers. For example, the rate for carrying a 20-foot box from China to Europe is some $2,000.
Freight rates on the Asia-Europe trade route fell to US$250 a TEU from a peak of $2,000 a box in 2008, as the global economy slowed.
Rates are currently hovering at between $1,750 and $1,780 per TEU.
Last year, the global container shipping industry lost more than $15 billion due to the slump in trade, overcapacity and price wars.
The shortage of containers for export and vessel capacity has also been a topic of concern of late. Unreplenished stock equipment and the scrapping of old containers have resulted in a shortage of container equipment.
The squeeze on capacity and equipment, combined with the willingness of Chinese shippers to pay more, have resulted in the principals of container lines allocating more container space to them and less to Malaysian shippers. For example, the rate for carrying a 20-foot box from China to Europe is some $2,000.