Seafreight rates not dropping despite recessive environment

THERE IS a lot of upward movement in seafreight rates on the Far East trade, but no great hiccups to report on either the US or European sea routes. According to information released to FTW on behalf of one of the majors on the Far East trade (and indicative of the rate movement of the other lines on the route), the market westbound has not slowed down. The line increased rates in April and June by approximately US$200 to US$300 per teu, with a further US$200 per teu expected in September – depending on the market situation. And, as usual on this busy trade, the peak season surcharge of US$200 to US$300 per teu was implemented from June 1 to end-December. Eastbound, the export market to the Far East has been very buoyant. This allowed the line to increase rates on June 1 by US$200 per teu, and another US$200 per teu is scheduled for August. However, it has been quieter times on the US and Europe trades. FTW spoke to David Williams, SA MD of Maersk Line, and he said: “As suspected, the vast majority of our business is contracted annually, therefore rates to/ from Europe and the US have remained stable. “What has obviously changed is the floating bunker adjustment factor (BAF) calculation with the constant rise (until very recently) of the oil/bunker price.”