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Posted on October 14, 2008

Demand for goods has fallen in the two main consumption areas; the United States and western Europe.  This means that exports from Asia to these areas have actually fallen, resulting in under-utilisation of shipping.  The utilisation of container ships from Asia to northern Europe is expected to fall to 91% in the peak season, which is the lowest level since 2003.  The result is that freight rates have fallen and appear to be still declining.  

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