Pricewar could hit Asien-Europa route

Pricewar could hit Asien-Europa route

16-04-2018 14:00:00

The freight rates on the container routes from Asia to Europe are at their lowest within the last few years, due to competition among the major container shipping companies that undermine each other in pursuit of market share. The situation is starting to look like a price war.

On top of the lowest rates in nearly two years on the Asia-Europe route, where the SCFI spot rate has been 17 percent below the level that can be written of as seasonal fluctuations, developments this week are crucial in determining whether the shipping companies are heading for a price war, SeaIntelligence Consulting, Lars Jensen, writes on his Linkedin profile.

The container shipping companies have announced higher prices on Asia-Europe routes from today.

"Whether these increases are successful will be proved in the coming week and it will be determined if the price war was a short-term fluctuation in the traditional post-Chinese New Year market or if it is far more serious and can thus bring profitability to the whole 2018 at risk, "writes Lars Jensen.

On Friday, the Shanghai Containerized Freight Index, SCFI, closed at only 585 dollars/teu, which was a decline of 5.2 percent compared to the week prior, and 300 dollars less than at the beginning of the year.

Source: Linkedin, Lars Jensen / Maritime Denmark

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