Spot Rates Sky-Rocket After Collapse Of Hanjin Shipping

Spot container freight rates on the major routes from Asia soared by up to 42% today following the collapse of Hanjin Shipping, data from the World Container Index reveals.

Rate assessment increased by 42% to $1,674 per 40ft container on the Shanghai-Los Angeles route, by 19% to $2,151 on the Shanghai-New York route and by 39% to $1,826 on the Shanghai-Rotterdam route.

“Unpredictable freight rates are not new phenomenon in the container industry, however a major upheaval of supply like this is likely to cause extreme short-term price volatility. Shippers should expect increasing freight costs and tight allocation for several weeks at least,” said Richard Heath, general manager of WCI.

“The Hanjin bankruptcy means a shock to the market – some of our shipper customers are making contingency plans and asked us to assess the impact of this on their supply chains,” said Philip Damas, director at Drewry, which jointly owns WCI alongside Cleartrade Exchange.

Drewry will run a free webinar for exporters and importers on 26 September called “Code Red”, to highlight the procurement risks and mitigating strategies required to adapt to the transformation of the ocean carrier sector. Contact enquiries@drewry.co.uk for details on access.

The World Container Index assessed by Drewry tracks and documents the weekly changes in spot rates on 11 East-West routes.

The World Container Index is a weekly container pricing index based on actual agreed freight assessments reported by industry players in Asia, Europe and the US and is not financed or backed by either shipper or carrier interests.

Reference: drewry.co.uk

Disclaimer :
The information contained in this website is for general information purposes only. While we endeavour to keep the information up to date and correct, we make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability or availability with respect to the website or the information, products, services, or related graphics contained on the website for any purpose. Any reliance you place on such information is therefore strictly at your own risk.

In no event will we be liable for any loss or damage including without limitation, indirect or consequential loss or damage, or any loss or damage whatsoever arising from loss of data or profits arising out of, or in connection with, the use of this website.

Latest Shipping News You Would Like:

U.S Navy Accuses Iranian Vessels Of Harassing Its Marine Attack Helicopter With Lasers

Posted on September 29, 2023

The vessels of IRGC shone a laser several times at a US attack helicopter as it was carrying out its routine operation in the international airspace yesterday, over the Gulf.

European Maritime Companies Ditching Toxic Ships On Bangladesh Beaches, Killing Workers

Posted on September 29, 2023

European maritime majors are now ditching old vessels for scraps on Bangladeshi beaches in polluting and dangerous conditions that have taken the lives of workers pulling them apart, informs Human Rights Watch.

HII Achieves Construction Milestone For Virginia-Class Submarine USS Arkansas

Posted on September 29, 2023

Newport News Shipbuilding has hit a significant and new milestone in the building of a Virginia-class sub dubbed Arkansas (SSN 800).

Improperly Declared Dangerous Goods Putting Lives At Risk In The Supply Chain

Posted on September 29, 2023

Over the past decade, containership fires have seen a disturbing rise, with a notable number resulting in casualties and total losses.

NYK To Trial Mooring System To Suppress Hull Shaking With Jera And Trelleborg Marine Systems

Posted on September 29, 2023

At many ports facing the open sea, hull shaking caused by sea swells and long-period waves has led to cargo-handling interruptions and ship evacuations, reducing port operation efficiency.