NOL: Rates continue to tumble
Neptune Orient Line said its average freight rates are continuing to fall, to $2,190 per 40-foot equivalent unit in the four-week period ending June 26, 29 percent below the same period one year ago.
Volumes were 172,200 FEUs, 14 percent below the same period last year.
“The decrease in volume was due to the decline in demand on nearly all major trade lanes. Lower average revenue per FEU was due to lower core freight rates and lower bunker recovery,” the company said in its monthly operational update.
Year to date, the company said shipping volumes total 970,600 FEUs, off 24 percent from the prior year. Rates have averaged $2,375 per FEU year to date, 20 percent below the prior year period.
Earlier this month, the Transpacific Stabilization Agreement announced plans for a $500 per FEU rate hike. But APL noted a few days later whether the plan by the discussion agreement among 14 container carriers in the Asia to U.S. trade would succeed.
“There is no assurance that APL can successfully implement the quantum of freight rate increase as outlined in the TSA guideline,” the parent of container carrier APL said in the statement issued through the Singapore Stock Exchange.