14 January 2009

THIS IS BEYOND THE GREAT DEPRESSION Shipping rates hit zero as trade sinks [news story]

Article: "Shipping rates hit zero as trade sinks"
Source: Telegraph.co.uk
Excerpt(s): 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. "They have already hit zero," said Charles de Trenck, a broker at Transport Trackers in Hong Kong. "We have seen trade activity fall off a cliff. Asia-Europe is an unmit­igated disaster." Shipping journal Lloyd's List said brokers in Singapore are now waiving fees for containers travelling from South China, charging only for the minimal "bunker" costs. Container fees from North Asia have dropped $200, taking them below operating cost. Industry sources said they have never seen rates fall so low. "This is a whole new ball game," said one trader.
Link to Full Story: http://www.telegraph.co.uk/finance/4229198/Shipping-rates-hit-zero-as-trade-sinks.html
Picture from Telegraph.co.uk, originally captioned: The cost of shipping goods from Asia to Europe has tumbled

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