Recession pushes down sea shipping rates

03/06/2009 15:00

Prices in Dutch sea shipping were 15.5 percent lower in the first quarter of this year compared with the previous quarter. Shipping companies have substantially reduced rates for container transport in particular. Decreases in time charter rates were smaller.

Prices in Dutch sea shipping

Prices in Dutch sea shipping

Recession hits Dutch container transport hard

Sea container transport to and from the Netherlands cost 22.1 percent less in the first quarter of 2009 than in the previous quarter. Prices of outgoing container transport in particular dropped sharply: by 28.3 percent. Prices of incoming container transport were 17.3 percent down on the fourth quarter of 2008.

As demand for container transport has been reduced sharply because of the recession, shipping companies have lowered their prices. The price decrease was intensified by lower fuel prices. Prices of shipping fuels were 5.3 percent down on the previous quarter.

Dutch container shipping lines

Dutch container shipping lines

Time charter rates now also down

One form of sea shipping is time chartering, where a client hires a vessel, and its crew, for a specific period of time. Time charter rates were 6.1 percent lower in the first quarter of this year than in the last quarter of last year. Changes in fuel prices do not have effect on time charter rates, as the vessels are hired exclusive of fuel.

Ömer Eryigit