![](http://www.ftalliance.com.au/data/uploaded_images/afr 130725.jpg#&39; border="0")
The Drewry World Container Index, which tracks freight rates for 40-foot containers on the world's most popular shipping routes, has halved over the past 12 months. While the index spiked in early June as trade tensions between the US and China eased, it has slid over the past month dropping 5 per cent in the week to July 10 to trade at $US2672 per 40 foot container.
Tom Jensen, General Manager of Freight Policy at Australia's Freight & Trade Alliance, which represents importers and exporters, said record numbers of new ships were built last year as ocean carriers invested in vessels powered by alternative fuels such as methanol. "But while there are geopolitical issues, the shipping lines will try to keep freight prices – and their margins – higher at every opportunity," Jensen said.