[270411.EN.SEA] BoxTradeIntelligence Sees Asia-Europe Already Falling This Year

THE Asia-Europe route is already generating operating losses as the slim US$146 per TEU profit has now been eaten up by rising bunker costs alone, says London's BoxTradeIntelligence, analysing Maersk Line data. 

According to the agency's latest analysis of Maersk's bunker surcharges in the fourth quarter of 2010, based on an average price of $471 per ton of bunker, or $1,110 per FEU, according to its formula, but currently stands at $1,380 per FEU based on a fuel price of $571 per ton or $135 per TEU more. Moreover, it is about to increase to $1,520 FEU in May.

According to the Shanghai Shipping Exchange, all ocean carriers' average all-in rate out of China to northern Europe fell from $1,472 per TEU at the end of the fourth quarter last year to $1,255 per TEU by April 15 instead of the all-in average freight revenue rising to reflect the increase in bunker charges.

Even Hong Kong's OOCL which produced robust first quarter results, reported that its east and westbound Asia Europe trade lane revenue fell from $1,508 per TEU in the fourth quarter to $1,416 per TEU, exacerbated by a seasonal nine per cent decline in cargo volume. London's BoxTradeIntelligence predicted that other carriers will show similar results in coming weeks. 

Source : HKSG, 27.04.11.