The container shipping world is getting smaller.
Shipping freight rates for transporting containers from ports in Asia to Northern Europe have plummeted 78 percent this year, after posting another drop this week, a source with access to data from the Shanghai Containerized Freight Index told Reuters.
Further expected container shipping liner losses throughout the first half of 2016, exacerbated by the awful prevailing spot and contract freight rates will lead to a major trigger point at some stage later this year.
French-based CMA CGM, the world’s third-largest container shipping firm, said on Monday it expects its volume growth to outperform the market again in 2016 after strong expansion last year helped it cushion a slide in freight rates.
Falling shipping freight rates for transporting containers from Asia to Northern Europe on Friday showed there was no traditional surge in cargo exports from China ahead of the Chinese New Year, indicating a bleak outlook for the industry.
The world’s second biggest container shipping line, MSC, has become the latest firm to resume direct services to Iran, although trade remains cautious as Western sanctions are still in place and regional tensions escalate.
Despite positive growth momentum, the container shipping industry continues to suffer new, big ship deliveries with no let-up to the ordering frenzy according to the Container Forecaster, published by Drewry Maritime Research.
DB Schenker Logistics and Maersk Line have signed a six-year strategic agreement on reducing CO2 emissions from ocean freight. The partnership emphasizes the companies’ shared commitment to sustainable growth. Maersk Line will undertake to reduce the CO2 emissions of every container it ships on behalf of DB Schenker Logistics between now and 2020 by 20% compared to 2014 levels.