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S. Korean shippers get Q3 boost from higher rates, low fuel costs
South Korean shippers are forecasted to post strong earnings in the third quarter of the year due to increased fare and a drop in fuel costs.
The global freight rates reached 1,448.87 on Friday based on the Shanghai Containerized Freight Index, more than doubling last year's rates and marking the highest level since July 2012.
According to Jung Yeon-sung, an analyst at NH Investment & Securities Co., the higher global freight rates were due to gradual recovery in maritime cargo volume leading to a shortage in supply of cargo service.
Fuel costs decreased due to a fall in international crude prices, with the West Texas Intermediate crude prices for November delivery dropped at US$40.88 a barrel on Friday from the $60 mark early this year.
Bulk carriers such as Pan Ocean Co. and Korea Line Corp. are also expected to show improved earnings in the third quarter s its Baltic Dry Index (BDI) reached 2,097 on Oct. 6, the highest level so far this year.
The BDI measures shipping costs for commodities,