China-Italy container freight: prices continue to drop

China-Italy container freight: prices continue to drop
China-Italy container freight: prices continue to drop
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Drewry records the 35th consecutive drop in the cost of container freight on the China-Italy route, which drops again: -9% (4,200 dollars).

The parameter today is 67% lower than that recorded a year ago.
Even more significant decline in the route to Rotterdam, -13%.
-3% on the Shanghai – Los Angeles and Shanghai – New York routes.

The only increase, albeit limited (+ 1%), was recorded on the New York – Rotterdam section.

The routes between the two sides of the Atlantic do not register declines compared to 2021 and are catching up with freight rates that are 18% higher for box shipments from Rotterdam to New York and 11% for the reverse route.

Overall, the recorded decline is of 7% compared to last week.

The average value of freight rates thus stands at $ 3,145 per 40-foot unit, compared to the peak of $ 10,377 reached in September 2021.

Shipping companies would like to halt this continuing decline in costs. How?

  • canceling trips
  • scrapping container ships

Both strategies are aimed at reducing hold supply, but are not proving particularly effective.
Scrapping, for example, can be applied to older container ships, which are smaller than newer ones. Therefore, their disposal does not particularly affect the availability of seats for travel.

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According to Alphaliner, today 5627 container ships operate in the world, with an average age of 13.5 years and a total capacity of 25.5 million TEUs. But this average age also includes small ships from 500 to 999 TEU, which have an average age of 17, with 239 units over twenty. If we go up in the range from 5300 to 7499 teu the average age drops to 16 years, with 115 units with twenty or more years.

In 2022, few cellular ships will be decommissioned and their numbers are expected to increase. However, the total capacity removed from the market could be lower than the new one that will be launched in the next two years. Also according to Alphaliner, the new units that will leave the yards will increase the global hold by 8.1%. There remains the alternative of stopping the container ships without demolishing them. A phenomenon that has been growing in recent months and now involves 4% of global capacity.

[Fonte: e]

The article is in Italian

Tags: ChinaItaly container freight prices continue drop