News and Politics | January 15, 2009 | 3 comments

Shipping rates hit zero as trade sinks

source: http://www.telegraph.co.uk/finance/4229198/Shipping-rates-hit-zero-as-trade-sinks.html

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Freight rates for containers shipped from Asia to Europe have fallen to zero for the first time since records began, underscoring the dramatic collapse in trade since the world economy buckled in October.

"This is no regular cycle slowdown, but a complete collapse in foreign demand," said Lindsay Coburn, ING's trade consultant.

Idle ships are now stretched in rows outside Singapore's harbour, creating an eerie silhouette like a vast naval fleet at anchor. Shipping experts note the number of vessels moving around seem unusually high in the water, indicating low cargoes.
  1. groups:
    News and Politics,   Greatest Depression
  2. tags:
    News and Politics,  Business,  Trade,  Shipping,  1 more
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3 comments // Shipping rates hit zero as trade sinks

  • numinant
  • Lazybones
  • Katmai512
    • 0
      Katmai512  

    • Odd and I haven't heard of it just yet. I have been in the logistics industry for several years now and I can ascertain that January to around March is usually the slowest time of the year (after the Christmas season and not quite Summer yet).

      From my experience, Shipping usually involves a whole lot of middlemen that knows someone that knows someone with something, etc. The vessel operator MAY be selling it at a steep discount but where the real money is made is with the negotiating middlemen.

      Since the article talked mostly about break bulk and bulk shipments, it will take a while before the containerized goods will fully be hit due to orders still being run. Nonetheless, this is grim news indeed.

      Thank G/god(s) I'm now selling frozen food than selling freight! It's a whole lot easier!

    • 3 years ago
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