Shipping rates make waves

Booming world trade and demand from China is forcing up the price of shipping rates. Which is probably good news for the air freight companies where the pressures appear to be the other way around.

Over the past few years cargo volumes have exceeded the capacity of vessels available by about 10% a year. Added to that there has been the ongoing rise in fuel prices.

Glenn Delve, commercial director of Mediterranean Shipping Company (MSC), said that price increases over the past year had been between 15% and 20%, but this depended on the type of cargo, the trade route and the client. It is China, where the economy is growing by about 15% a year, which is adding to the problem.

New ships are being built as fast as possible and Glenn Delve thinks the shortage could be eased within the next six months to a year.
Source: The Times South Africa