Asia-Europe carriers incurring record loss for every container

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Shipping lines lose a record US$141 for every container they ferry to Europe from Asia because of high fuel surcharges, said a report from ACM/GFI, a joint venture between ACM Shipping of London and GFI Group headquartered in New York.

The ACM/GFI report said carriers are losing money even at a freight rate of $649 a container because of a fuel surcharge of $790 for each box.

“Current rates on Asia to Europe are lower than the lows seen in 2009, when shipping companies were losing $41 for each 20-foot box that June,” it added.

Slowing economies are reducing orders for goods shipped in containers as fuel prices rise and an expanding capacity pushes down freight rates to levels last seen in 2009.

Higher prices mean fuel now represents 50 percent to 70 percent of container lines’ costs versus 30 percent in 2008-2009, the report said.

ACM/GFI obtained its figures from a weekly index produced by the Shanghai Shipping Exchange (SSFI) for the rate to northwest Europe from Shanghai that covered fuel and other surcharges.