Ocean freight rates for moving container boxes from Indian ports to Europe have come down by 50 per cent to US$450 per TEU from $900 in the past month, according to the Business Standard.
Industry representatives fear freight rates, excluding bunker adjustment factor (BAF) and currency adjustment factor (CAF), would come to “zero level” before mid-2009.
The rates have plunged due to excess availability of space, non-availability of cargo and the recent drop in crude oil prices.
A senior official from a European shipping line said exporters were paying only BAF, CAF and terminal handling charges. For instance, of the $450 paid by an exporter to move a TEU from an Indian port to Europe, BAF is around $400.
Shipping lines operating between Indian and US ports have also witnessed a 28 per cent drop in rates, down to $1,000 (plus BAF) per TEU compared with $1,400 a month ago. The rates are expected to drop by another $100 by February-end.
Industry representatives fear freight rates, excluding bunker adjustment factor (BAF) and currency adjustment factor (CAF), would come to “zero level” before mid-2009.
The rates have plunged due to excess availability of space, non-availability of cargo and the recent drop in crude oil prices.
A senior official from a European shipping line said exporters were paying only BAF, CAF and terminal handling charges. For instance, of the $450 paid by an exporter to move a TEU from an Indian port to Europe, BAF is around $400.
Shipping lines operating between Indian and US ports have also witnessed a 28 per cent drop in rates, down to $1,000 (plus BAF) per TEU compared with $1,400 a month ago. The rates are expected to drop by another $100 by February-end.