SA freight rates run contrary to global trends

A proposed freight rate increase of over 30% was a bit too volatile to be described as “stable”, according to Andrew Wallace of Paccon Logistics, who was arguing against a statement made by London shipping consultant Drewry in a recent issue of our electronic sister publication FTWOnline. Global container freight rates have stabilised recently, it said in its Global Freight Rate Index – a weighted average across all main trades covering over 600 different trade routes and several other aggregated indexes. “But,” said Wallace, “ex China to SA rates are around US$850-US$ 950/TEU, including bunker adjustment factor (baf). And some carriers have just announced their intention to implement a general rates increase (GRI) of US$300/TEU. I wouldn’t call that stable.” However, a quick chat to a couple of regular FTW contacts in the maritime field suggested that what happened on the China-SA trade was “just peanuts” in global terms, and not likely to have more than a very minimal effect on Drewry’s global index. However, they both did agree that a 30% increase was a bit of a whopper, and suggested that the shippers’ market would be likely to rebel at such a suggested rates hike.