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Carriers Abandon ‘Charade’ of New GRIs While Costs are Falling Faster than Rates

(Mike Wackett – The Loadstar)

Spot rates on the Shanghai Containerised Freight Index (SCFI) for Shanghai to North Europe tumbled again on Friday to a new 12-month low of $738 per teu, and remain anchored in what has been described as “sub-economic” territory – but with unit costs also in fast decline, the defining bar of profitability is being lowered.

Indeed, carriers appear to be switching their emphasis to reducing their costs rather than making apparently futile attempts to increase freight rates – especially with the expectation of declining demand in a Eurozone economy heading towards a new recession. Read more here.