Xeneta records 18 percent drop in Asia-Europe freight rates
Container freight rates have dropped by 44 percent since May 2012 as a result of overcapacity and ‘various economic turmoil’ in the market, according to recent research.
A sea freight comparison by Xeneta has revealed that the average Asia to North-Europe 40ft container freight rate has dropped by 18 percent since the beginning of the year to $2,564 and $1,341 per 20ft container.
The Norwegian company, which monitors 1,700 trade lanes around the world, has recorded a consistent downward slope in its global market index for sea freight over the past few months since the general rate increase was released in March and April.
For the Shanghai to Rotterdam trade route, average shipping prices for containerized freight was as low as $1,141 per 20ft container and $1,978 per 40ft.
According to Xeneta, this is contradictory to what Drewry's market index proclaims, saying that the average per 40ft in the same trade lane is at $1,335. Drewry's index is based on the rates collected from several freight sellers, whereas Xeneta collects actual data from a large member base of both freight buyers and sellers.
"Even though the market is dropping, there are still freight buyers that cannot keep up with the rapid fluctuations in the market, resulting in them overpaying on their routes. Xeneta reports that one of the best in class performers has a price under $1,200per 40ft from Shanghai to Rotterdam," says CEO of Xeneta, Patrik Berglund. "That is why it's so incredibly important to benchmark your own prices against the market, and Xeneta is here to show you what you should be paying, instead of what you are paying," he adds.
Xeneta is on path to a global coverage of trade lanes, already covering 1,700 port pairs around the world and still growing swiftly. Among those trade lanes you can find several high-traffic ones like Hong Kong to Hamburg which operates at $1,998per 40ft and Singapore to Bremerhaven at $2,038 per 40ft, last tracked 23/5/2013.
Kuehne+Nagel cuts carbon footprint by 70% for Honda China
Around 16,000 tonnes of CO2 has been cut from the supply chain of Honda's China-based manufacturing division through a road-to-rail transformation in partnership with logistics leader Kuehne+Nagel.
The programme was developed through KN Sincero, the joint venture between Swiss headquartered Kuehne+Nagel and Chinese automotive logistics firm Sincero, established in 2018.
KN Sincero worked with Honda China to develop an integrated solution to convert much of its domestic long-haul trucking to train lines, using regional hubs to improve supply chain performance and further reduce carbon emissions. The programme delivered consolidations as well as value-added services, including sorting, scanning, repackaging, GPS track and trace, and recyclable container management.
"Kuehne+Nagel has always been a supply chain partner that we can rely on, to help us improve our supply chain performance whilst also achieving our environmental goals,” said Mr. Jiang Hui and Mr. Takuji Kitamura, Joint General Manager of Wuhan Dong Hon, the logistics affiliate of Dongfong Honda Automotive.
After six months of shifting to the road-to-rail model, new supply chain reliability and efficiencies are expected to eradicate 16,000 tonnes of carbon emissions annually. The carbon savings represent an enormous 70% reduction in total.
"Automotive is one of the most important sectors in contract logistics, particularly in China, the world’s largest automotive market,” added Gianfranco Sgro, member of the Management Board of Kuehne + Nagel International AG, responsible for Contract Logistics. “I am glad that Kuehne+Nagel and Honda share a common vision of service, innovation and sustainability.”
Kuehne+Nagel’s Net Zero Carbon programme
Kuehne+Nagel announced its Net Zero Carbon programme in 2019 with a dual purpose to reduce CO2 output in its own logistics operations, as well as partnering with organisations to minimise their own impact on the planet. Kuehne+Nagel reached carbon neutrality globally in 2020 throughout its own, direct emissions, and is now focused on developing its capabilities to serve partners.
Dr. Detlef Trefzger, Chief Executive Officer of Kuehne+Nagel International AG, said the programme is “a package of measures to fight CO2 emissions and provide sustainable and innovative supply chain solutions – hand in hand with our suppliers and customers”.
As part of the initiative, Kuehne+Nagel established its own nature projects in Myanmar and New Zealand, and invested in ‘nature-based’ carbon dioxide compensation projects to strip harmful emissions from the environment. It is committed to being CO2 neutral for shipments in its network of transport suppliers by 2030.