Shipping costs on sea routes continue to fall as demand declines. On one of the most important routes between Asia and Europe, freight prices have been falling for over nine weeks in a row, even though they have been low before. The global recession is approaching, experts say.
Freight transport prices from Asia to Europe continue to decline. Transport rates for container delivery have dropped. At the same time, the demand for road transport of goods in Europe and the CIS countries remains stable. At the same time, the process of communication between carriers and companies that produce or sell goods is greatly simplified if you search for cargo on Stascom , a portal combining offers for various groups of goods and cargo transportation.
As for container shipments from Asia to Europe, according to an insider, the tariff rate fell by almost nine percent to $ 211. In addition, prices for container shipments in other regions fell even more significantly: to Mediterranean ports, prices fell 14 percent, to the US West Coast by 8.4 percent, and to the US East Coast by 5.2 percent.
The weekly index reflects exports originating from the world's largest container port, Shanghai, and shows that at current levels, business is considered unprofitable according to industry experts, Danish Maersk, MSC from Switzerland and CMA CGM France.
Most shipowners spend more than their income. Calculations show that the cumulative annual freight revenue of large container ships ("Capesize" size) since the summer of 2015 within this price threshold is not profitable. Since about November 2015, revenues have been well below average operating costs.
The outlook for the retail sector remains poor at the moment because the global economy has almost no stimulus. Each type of cargo ship will also not be able to make a profit in 2017, which follows from analyst reports and industry data. This estimate can only be explained by the downturn in the global economy. Due to the weakening economy in the United States, as well as in China and other developing countries, shipping supply capacity is currently much greater than demand.
