APL’s average rates show decline since summer
Average container freight rates at APL declined again in the four-week period to Nov. 14, when compared to a peak reached during the summer.
For the latest four-week period, APL’s average rate was $2,653 per 40-foot equivalent unit, up 21 percent from the same period in 2002, but down 1 percent from their average level of $2,687 per FEU in the four-week period ended Oct. 17. In the two previous four-week periods, during the summer, average rates per FEU at APL amounted to $2,727 per FEU and $2,739, showing a slow, continuing decline since then.
Until recently, the trend for freight rates has been one of steep rises, particularly in the Asia/North America and Asia/Europe trades.
“There was a slight softening in the volume from last period as we entered into the traditional off-peak season,” said Neptune Orient Lines, the parent company of APL. “Average revenue per FEU was also lower, reflecting the increase in intra-Asia and backhaul volumes, as transpacific eastbound moves into the off-peak.”
APL’s average monthly freight rates are affected by the mix of cargoes and trade lanes. They provide an indicator of global pricing trends in container shipping.
The carrier reported that its volume out of Asia into Europe and the Middle East remains strong, with high load factors.
The container traffic moved by APL in the four-week period ended Nov. 14 was 118,900 FEUs, 3 percent more than a year earlier.
Over the same period, APL Logistics’ total revenue rose by 10 percent, to $79 million.