Container rates collapse in Pacific trades during first quarter this year

The average container tariff in North Pacific trade, the largest outbound container route, tumbled in the first three months this year.

The Ministry of Maritime Affairs and Fisheries said, "the average rates during the first quarter this year dropped by 9.3 percent, or 113 dollars, to 1,101 dollars per TEU (Twenty foot Equivalent Unit) from 1,214 dollars in the same period of last year. The drop is attributed to cargo decreases in Asia and North America due to a temporary U.S. economic slow-down."

On the other hand, container tariffs in Asian and European trade rose by 3.9 percent, or 50 dollars, to 1,317 dollars, as compared to 1,267 dollars a year earlier.

"Container tariffs are on the decline, having hit their ceiling last year, " a concerned shipper said. "Especially, U.S. trade rates are much influenced by the U.S. economy, which has led to deteriorating rates," he added.