Shipping lines lose a record US$141 for every container they ferry to Europe from Asia because of high fuel surcharges, said a report from ACM/GFI, a joint venture between ACM Shipping of London and GFI Group headquartered in New York.

The ACM/GFI report said carriers are losing money even at a freight rate of $649 a container because of a fuel surcharge of $790 for each box.

“Current rates on Asia to Europe are lower than the lows seen in 2009, when shipping companies were losing $41 for each 20-foot box that June,” it added.

Slowing economies are reducing orders for goods shipped in containers as fuel prices rise and an expanding capacity pushes down freight rates to levels last seen in 2009.

Higher prices mean fuel now represents 50 percent to 70 percent of container lines’ costs versus 30 percent in 2008-2009, the report said.

ACM/GFI obtained its figures from a weekly index produced by the Shanghai Shipping Exchange (SSFI) for the rate to northwest Europe from Shanghai that covered fuel and other surcharges.

You May Also Like

RP carriers: SEAIR-Tiger deal may violate cabotage law

THE partnership between South East Asian Airlines (SEAIR) and Tiger Airways should be scrutinized to guarantee it does not skirt the country’s Cabotage Law,…

PAL buys Airbus aircraft in US$7B deal

Philippine Airlines (PAL) has placed a firm order with Airbus covering more than 50 aircraft consisting of single-aisle A321s and widebody A330-300s. The first…

DHL launches Asia-Europe door-to-door service

DHL Global Forwarding-Freight has expanded its door-to-door concept in intra-Asia Pacific with the launch of an intercontinental door-to-door distribution system from Asia-Pacific to Europe.…

ATS books P480M loss in first nine months

DOMESTIC shipping operator Aboitiz Transport System (ATS) posted a net loss of P480.4 million for the first three quarters of the year, a reversal…