THE cost of China-Europe shipping has more than
quadrupled in the past two months weeks, hitting record highs
as a shortage of empty containers stemming from the Covid crisis, reports London's
Financial Times.
The cost of shipping an FEU from Asia to
northern Europe has increased from about US$2,000 in November to more than
$9,000, according to shippers and importers.
Lars Jensen at consultancy SeaIntelligence
said, "It's a bottleneck problem. These rates are being driven by
customers fighting over a limited resource - containers."
Thousands of empty containers were left stranded in Europe
and the US in the first half of 2020 when shipping lines cancelled hundreds of
trips as coronavirus lockdowns caused a sudden slowdown in global trade. When
western demand for Asian-made goods rebounded in the second half of the year,
competition among shippers for available containers sent freight rates soaring,
the FT said.
Source : HKSG.
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