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Transpacific, Asia-Europe contract rates fall 29pc in year to May

Time：2016-06-15 Browse：150 Author：RISINGSUN

CUTS in freight rates are gathering momentum for contractual cargo transported via the main east-west trade routes, after falling 18 per cent between February and May, according to Drewry`s Benchmarking Club Contract Rate Index.

The index, based on average transpacific and Asia-Europe contract freight rate data provided confidentially by shippers, has now fallen 29 per cent in the year to May.

Shippers have secured hefty cuts in Asia-Europe annual contract rates and big reductions in their transpacific rates effective from May, reported American Journal of Transportation.

Drewry said that it has also secured for shippers 30 per cent reductions in contract rates for new contracts starting from the second quarter via its new eSourcing Ocean Freight Solution platform.

"The price war between carriers in the container shipping market continues and this is, for now, resulting in substantial reductions in contract rates for exporters and importers buying under contract," said senior Drewry analyst Philip Damas.