Container Rates

The BBC reporter Robert Peston has made reference to the dry Baltic rate on a number of occasions. This rate refers to the cost of transporting containers around the world with the goods which end up in UK shops. These rates had been dropping significantly since the last quarter of last year as demand for China's manufactured goods reduced in the US and Europe. Generally speaking, a falling rate for containers means that there is a falling demand for goods around the world and this is not a good sign for the world economy.

Well, I have to report that container shipping prices have started to move up. In fact they have increased significantly - maybe 30% up starting in April.

So now everyone will have to pay more to ship containers from China. This does not signify the end of recession because the ships are still running below capacity but it just might be a small indication that the tide might be turning. The main reason prices have increased is to prevent the shipping lines going out of business - the rates they were charging for containers we too low to be sustainable.

So my advice to anyone shipping containers is to get a few quotes before booking your container forwarder. I found a dramatic variation with some brokers charging 40% more than others. When searching for your forwarding agent it's also important to make sure they are quoting for the whole job and includes all hidden charges. You want a total rate to take your container from the factory in China or India all the way to your UK warehouse. Anybody who would like the names of shipping forwarders just drop me a note on this blog.