Friday 7 June 2013

Asia Europe Full Container (FCL) Rates

We've just written to Lloyds / IFW, the leading online freight newspaper on one of our favourite topics - import FCL (full container) rates from Asia to Europe/UK. We have quite a few clients on this lane so we know exactly what the market is doing. We've had a few other letters published in the past so let's see what happens...

http://www.lloydsloadinglist.com/freight-directory/news/asia-europe-box-rates-could-be-stronger-than-thought/20018050872.htm?source=ezine&utm_source=Lloyd%27s+Loading+List+Daily+News+Bulletin&utm_campaign=94e9920c45-LLL_7_June6_7_2013&utm_medium=email&utm_term=0_1a5c244239-94e9920c45-256747097


Dear Sirs

Further to your article in today’s IFW, I have to say I’m surprised that Xeneta believe that Asia Europe rates are stronger than widely thought. We’ve contributed a couple of times on this topic this year, mainly as Asia Europe is a key trade lane for the UK and Europe, and also because we have key customers on this trade lane whose freight models we’re actively managing.

By coincidence, we re-negotiated some business on 22 May, two days before Xeneta advised that the market rate was USD 1978/40 and I really would be surprised if the market rate was anywhere near that level as our rate on 22 May from SHA to RTM was around USD 1300, around 35% less than their figure. At the same time, there will, for sure, be customers who simply don’t have the time or interest in this area whose rates are lagging behind the market, and we see this all the time.

Having said that, Xenata make a fair point, which is that customers need to actively manage their inbound freight costs, especially as the USD is also pretty strong, which directly impacts their landed costs. For what it’s worth, we believe that the huge surfeit of capacity on this trade lane will
make the huge planned July GRIs virtually impossible to implement although we do expect rates to turn as we enter the peak season for this lane.

Kind Regards


Andy Cliff
Owner
Straightforward Consultancy Ltd
www. straightforwardconsultancy.co.uk



No comments:

Post a Comment