Shipping’s Tough First Quarter Sees Rates Down, Costs Up — Panjiva


Shipping’s Tough First Quarter Sees Rates Down, Costs Up

Corp - Shipping 608 Global 722 Mode - Bulk 101 Mode - Containerized 1005 Mode - Seaborne 1273 Theme - Rates 141

The shipping industry had a terrible first quarter with container shipping rates having fallen by 24.0% year-to-date according to S&P Global Platts figures. Shipping from China to the U.S. west coast did poorly due to the previous end of inventory building ahead of – now delayed – tariffs while the annual drag from the lunar new year holiday proved both longer and deeper than normal. A rise in oil prices due to OPEC cuts and tighter sanctions against Iran and Venezuela meant that bunker fuel costs likely rose by 21.2% during the quarter. The lower rates / higher costs situation mean...

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