Freight rates tumble but no winners

Over the past two years freight rates have tumbled to below cost, fuel prices are lower, personnel have taken salary cuts and freezes so it would be safe to say that the cost of product to market is significantly reduced. Yet when I go into my local supermarket in Europe, the price of South African fruit is higher this year than it was two years ago. While we are scrutinising shipping companies who are reporting losses for 2009, it might be worthwhile investigating where all the reduced cost is actually going. Annoyed carrier.