Asia-Europe spot rate decline quickens – 'the market has turned'
The steady decline of container spot freight rates between Asia and Europe turned decidedly steeper ...
DSV: 'AHEAD IN BIDDING FOR SCHENKER'DSV: UNLUCKY FRIDAYSMAERSK: WEAK AGAINWMT: NEW PARTNERSHIPXPO: HAMMEREDKNIN: LEGAL FIGHTF: UPDATEMAERSK: CROSS-BORDER BOOST MAERSK: NIGERIA TERMINAL EXPANSION FDX: 'NON-EVENT' CORPORATE STRUCTURE UPDATE XPO: WINNERS AND LOSERS ODFL: 'SOFTNESS'
DSV: 'AHEAD IN BIDDING FOR SCHENKER'DSV: UNLUCKY FRIDAYSMAERSK: WEAK AGAINWMT: NEW PARTNERSHIPXPO: HAMMEREDKNIN: LEGAL FIGHTF: UPDATEMAERSK: CROSS-BORDER BOOST MAERSK: NIGERIA TERMINAL EXPANSION FDX: 'NON-EVENT' CORPORATE STRUCTURE UPDATE XPO: WINNERS AND LOSERS ODFL: 'SOFTNESS'
With intra-Asia freight rates soaring five-fold over the first nine months of the year, South Korean feeder operators have agreed to set aside slots on intra-Asia routes for compatriot small and mid-size exporters.
Until year-end, the slots will be sold to the shippers at discounted rates, following a Korea International Trade Association request.
Every week, Korea Marine Transport Co (KMTC Line) will set aside 30 teu for Busan-Chennai shipments and 70 teu for Busan-Nhava Sheva shipments, while Sinokor Merchant Marine and its subsidiary, Heung-A Line, will reserve 20 teu each for Busan-Singapore, Busan-Port Klang, Busan-Bangkok and Busan-Laem Chabang shipments.
Namsung Shipping, CK Line, Pan Ocean, Pan-Continental and Dongjin Shipping will collectively reserve 60 teu for Busan-Ho Chi Minh City and Busan-Haiphong shipments. South Korean forwarder LX Pantos will help take bookings at lower fees.
Together this equates to a monthly allocation of 1,200 teu.
In January, shipping a container from South Korea to South-east Asia cost around $318 per 40ft, but this had surged to $1,482 in August.
The Red Sea crisis caused a shortage of tonnage on the Asia-Europe and transpacific routes, encouraging operators to divert ships from regional or short-haul lanes to these routes as freight rates rocketed to post-Covid highs.
As a result, while shipping costs to the Americas and Europe have recently shown some stability, shipping costs on South-east Asia routes are still strong.
KITA said eligible shippers would sign a shipping contract with the above feeder operators to secure dedicated space and preferential shipping rates.
The association’s vice-chairman, Lee In-ho, said: “I hope this project will help ease the logistics cost burden of our exporters that have been suffering from rising shipping rates.”
He continued: “In particular, we will do our best to actively support small and medium-sized export companies that have difficulty responding to supply chain instability, so that we can contribute to expanding South Korean exports.”
Check out this Loadstar Podcast clip of IKEA Supply Chain’s Stefan Krattiger on how ports can help shippers
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