There has been an increase in the cost of shipping material from Europe to China.
The World Container Index for the Rotterdam to Shanghai route saw an increase of 8 per cent yesterday.
Richard Heath from the World Container Index told Scrap-ex News: “There have been moderate increases towards the end of last month and we saw an 8 per cent increase yesterday.
“Prices were relatively flat at the beginning of the year, and at this time last year were on a downward trend. Then in the second half of the year they were flat, so we are starting to see some movement again.”
He added that the World Container Index was yesterday quoting a price of $509 per 40 foot unit for the Rotterdam to Shanghai route, although this was for freight of all kinds cargo, so commodity traders should see a lower price.
However, this is tiny compared to the Asia to Europe box rates that have risen by 114 per cent this week. The World Container Index Shanghai to Rotterdam container freight rate sub-index went from $1,276 per 40 foot container on 23 February to $2,732 on 1 March – a rise of $1,456.
The price of oil also soared yesterday to a 43-month high with Brent Crude jumping $6 to $128.40 on rumours that a Saudi pipeline had exploded. However, these rumours were denied by the Saudi Government and the price eased back to $125.6 a barrel still higher than before the surge as tension with Iran continue to unsettle the oil market.