Freight Rates in TEU Between Singapore and Rotterdam

Freight Rates in TEU Between Singapore and Rotterdam

Source: Germanischer Lloyd.

Singapore and Rotterdam are among the world’s largest container ports and are thus prone to the use of economies of scale by maritime shipping companies. These two ports are serviced by an array of ship classes, giving a sample of rates per TEU per ship class (see above). The introduction of the Emma class of 12,000 TEU containerships in 2008 marginally improved the shipping rates. The potential introduction of a “Malacca Max” class of 18,000 TEU containerships would further reduce rates per TEU but would impose higher port equipment costs, such as cranes able to handle such ships. There is thus a balance between the benefits that maritime shipping companies derive from economies of scale and the additional capital investment this process imposes on port terminals.