Alphaliner: Asia/Europe rates more volatile
Freight rate volatility on the Far East to North Europe trades has increased since the European Commission repealed the block exemption on shipping conferences on Oct. 18, 2008, shipping information service Alphaliner said.
In its latest newsletter, excerpted on its Web site, the firm said an analysis of the China Container Freight Index from October 2008 to 2011 finds the annualized volatility of freight rates on the route has risen to 20 percent, compared to 14 percent in the decade prior to abolition of freight conferences.
While some of the volatility can be blamed on the 2008-2009 financial crisis, Alphaliner said rates on non-European trades where immunity has been retained showed less volatility.
Similar observations were made by some carriers responding to an inquiry by the Federal Maritime Commission about the end of shipping conferences in Europe ('Block exemption working,' March American Shipper).
Alphaliner: Asia/Europe rates more volatile
