Executive Briefings

Report Details Trends In Overseas Chemical Bulk Freight Market

On an aggregate basis, freight rates for shipping chemical liquid bulk loads throughout Europe have decreased slightly between 2011 and 2012, according to a benchmark study conducted by LHC Consulting, a CLX Logistics company.

The study accounted for differences in transport specifications, including mode of transport, equipment type and product classification. Companies participating in the study collaboratively spend approximately €420m ($560m) annually on chemical liquid bulk freight.

The study found that prices across different trade lanes often moved in opposite directions. For example, shipments originating from the Iberian peninsula on average became 9 percent less expensive, in part because because of the financial crisis in that part of Europe. During that same period, shipments out of Sweden became 5 percent more expensive.

While basic freight rates generally decreased from 2011 to 2012, increasing fuel prices (approximately 10 percent) propelled total costs for liquid bulk freight, indicating that fuel costs continue to account for an even larger part of total freight spend.

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The study accounted for differences in transport specifications, including mode of transport, equipment type and product classification. Companies participating in the study collaboratively spend approximately €420m ($560m) annually on chemical liquid bulk freight.

The study found that prices across different trade lanes often moved in opposite directions. For example, shipments originating from the Iberian peninsula on average became 9 percent less expensive, in part because because of the financial crisis in that part of Europe. During that same period, shipments out of Sweden became 5 percent more expensive.

While basic freight rates generally decreased from 2011 to 2012, increasing fuel prices (approximately 10 percent) propelled total costs for liquid bulk freight, indicating that fuel costs continue to account for an even larger part of total freight spend.

Read Full Article