Global BCOs hit by fourth quarter of rising contract rates from Asia

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The jury remains out on the chances of a new rate war on the key east-west trades. Alphaliner said last week the rate truce between carriers – largely responsible for generally impressive second-quarter results – “appears to be crumbling”.

However, Drewry insists “there is no rate war going on at the moment”, despite a “softening of rates”, although it yesterday issued a press release noting the rise in contract rates from Asia to Europe and the US – and it has once more warned BCOs that they need to “rethink their contract negotiation strategy” in order to “mitigate rate increases”.