http://www.bloomberg.com/news/2011-07-27/container-vessel-rates-plunge-signaling-slowdown-in-u-s-freight-markets.html?cmpid=
Plunging rates for chartering container vessels that carry sneakers, furniture and flat-screen TVs may signal a U.S. consumer slowdown and losses for shipping lines in what is traditionally their busiest time of the year.
Fees for hiring vessels have fallen 9.3 percent since the end of April, according to the Howe Robinson Container Index, which tracks charter rates for a range of vessels. Last year, the index surged 56 percent in the period, as lines added ships on demand from U.S. and European retailers restocking for the back-to-school and holiday shopping periods.
“The troubling part is that charter rates are falling in the peak season,” said Johnson Leung, head of regional transport at Jefferies Group Inc. in Hong Kong. “Sentiment among consumers and retailers isn’t very strong.”
The cost of shipping 40-foot containers to the U.S. West Coast from China has slumped 42 percent over the past year to about $1,600 per box, according to data from Clarkson Securities Ltd., a unit of the world’s largest shipbroker. Derivatives show the price won’t exceed $1,962 before the end of next year.
Plunging rates for chartering container vessels that carry sneakers, furniture and flat-screen TVs may signal a U.S. consumer slowdown and losses for shipping lines in what is traditionally their busiest time of the year.
Fees for hiring vessels have fallen 9.3 percent since the end of April, according to the Howe Robinson Container Index, which tracks charter rates for a range of vessels. Last year, the index surged 56 percent in the period, as lines added ships on demand from U.S. and European retailers restocking for the back-to-school and holiday shopping periods.
“The troubling part is that charter rates are falling in the peak season,” said Johnson Leung, head of regional transport at Jefferies Group Inc. in Hong Kong. “Sentiment among consumers and retailers isn’t very strong.”
The cost of shipping 40-foot containers to the U.S. West Coast from China has slumped 42 percent over the past year to about $1,600 per box, according to data from Clarkson Securities Ltd., a unit of the world’s largest shipbroker. Derivatives show the price won’t exceed $1,962 before the end of next year.
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