Higher container freight rates, Eid bank closures worry steel scrap traders

Traders dealing in containerized steel scrap are battling expensive freight rates, while holiday banking closures in Pakistan are causing additional concerns in the market.

Container freight rates for scrap have continued to increase in recent months due to factors such as a renewed tightness of containers following bottlenecks at ports, together with shipping lines looking to recoup some of their lost earnings, market participants told Fastmarkets.
“There are container shortages due to congestion. Also, some vessels are skipping regular services. For example, if there was weekly sailing [for a certain vessel], it is now once every two weeks,” a Singapore-based trader said.
An Indian trader said he had heard that container freight would rise even further next month after some lines withdrew their container ships from various routes to tighten market supply.

A second Indian trader who deals in both ferrous and non-ferrous scrap said that he now had to pay around $1,400 per box for a 20ft container of scrap from Europe to South Asia due to congestion charges. That is an increase...

Published

Lee Allen

May 22, 2020

10:35 GMT

Singapore