Topic “freight rates” — Exporter Magazine

Lack of funding, oversupply and poor freight rates are going make 2012 a “crisis” year for the shipping industry, says Andrew Broomhead, CFO of Hong Kong’s largest operator of dry-bulk vessels Pacific Basin, according to CNBC. Germany’s biggest, and the world’s fourth largest container carrier Hapag-Lloyd, has announced it will impose a general rate increase (GRI) of USD$750 per TEU on its Far East westbound services starting from March 1, according to the Shipping Gazette. Southern exporters are being cautioned to plan ahead for shipping space with the likelihood major shipping lines will again not be offering unscheduled vessel visits to take pressure off peak season loads, according to Otago Daily Times. Global container ship operators, hammered by high costs, oversupply and flagging demand, are cutting shipping capacity to shore up freight rates depressed by a sluggish global economy, according to a Reuters article. The average Asia-Europe all-in freight declined 10% in April, according to Container Trades Statistics (CTS), which also revealed that rates on routes to the western Mediterranean, North Africa fell 7.4% and 9% on eastern Med and Black Sea trade lanes, according to the Shipping Gazette. Container ship charter rates are retreating as a wave of newly-built ships entering the market dulls ocean carriers’ appetite for hired vessels, according to Hellenicshippingnews.com.