Europe’s barge operators ditch containers as demand and rates fall, highlights a Loadstar news source.
Barge owners in Northern Europe
Barge owners in northern Europe are ditching containers and moving to liquids to transport as the rates crunch plaguing deepsea box shipping begins to affect them.
Inland operators and barge owners told The Loadstar full-box movements at Antwerp and Rotterdam had been low for some time, with empties and repositioning offering the sector its only real demand.
“We have begun to see many barge owners switching from dry, bulk and container services to servicing the liquids market, which is experiencing higher demand, and, in the process, selling their box barges to build large tanker barges.”
Daily freight charter rates of for dry and container barges sit around €2,800-€3,200, a stark contrast with €8,000-€9,000 being offered to move liquids.
Decline in demand
And, despite the decline in demand, congestion still hovers around 24 hours at both Antwerp and Rotterdam, according to container barge operator Contargo, which announced a series of low-water surcharges (LWSs) yesterday, blaming reduced rainfall leaving levels on the Kaub Gauge below 81cm.
It told customers: “Because of the reduced loads barges can carry, additional tonnage has to be chartered. We must point out that for gauge levels of 80cm or below in Kaub, we no longer have an obligation to transport.
“Nevertheless, we will do everything possible to transport your containers. As soon as there are signs of an improvement in the water levels, we will inform you immediately.”
It is applying surcharges of €215 and €275 per teu and feu for waters between 80cm and 71cm, increasing to €300 and €375 for 70-61cm, €415 and €550 for 60-51cm, and €635 and €825 for 50-41cm.
At the time of writing, the Kaub Gauge was at 76cm, having declined by 8cmin the past 24 hours.
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Source: Loadstar
