Argentina-Shipping costs at all time low

Shipping costs have dropped by a staggering 99% in the last month, as many ship owners are laying up vessels that are uneconomical to run.

To hire a bulk grain carrying vessel in June, was as much as US$230,000 per day, however you can pick up the same vessel today for US$2,000 per day.

Shipping is a complex business, the costings even more complicated, you may hire a vessel for US$100,000 per day for two years, then re-hire to someone else, who in turn re-hires to someone else, for US$140,000 per day.

Unable to hire them out at a profit, means that some companies are returning the vessel early, while others are prostituting the market at any price they can get, to keep things moving.

For the last five years, there has been a strong demand for vessels, however the economic crisis has brought things to an abrupt halt.

At the end of September there were 4,600 container vessels, moving around the world, according to the Lloyds shipping register.

Today only 60% of these vessels are operating on a regular basis, meanwhile shipping companies who have invested in shipyards to build new vessels, are questioning the viability of the industry