East-west rates down 41% since July 2010 peak

   Drewry Maritime Research’s East-West Freight Rate index has lost 41 percent of its value since it peaked in July 2010, the London-based analyst said Tuesday.
   The index provides a weighted average of rates across key Asia-Europe, transpacific and transatlantic trade routes. Prior to the current slump, the index had more than doubled through the preceding year from May 2009’s all-time low. Drewry’s Intra-Asia Freight Rate Index has lost 18 percent of its value since March.
   The indexes are part of Drewry’s monthly Container Freight Rate Insight publication, which provides all-in spot rates on major global headhaul and backhaul trades. Drewry collects its proprietary freight rate data from freight forwarders in the Far East, South Asia, Middle East, Europe, United States, Canada and South America, who provide their freight rates confidentially.
   “Our research shows that freight rate volatility has been increasing over recent years, with more violent frequencies of oscillation,” said Container Freight Rate Insight editor Martin Dixon. “Cargo owners need to accept that volatility is now a long term feature of more turbulent times and plan accordingly.”
   Drewry said it now provides spot rate benchmarks on 550 international trade routes.