The cost of transporting goods from Asia to northern Europe by sea continues to fall sharply, according to Xeneta.

Figures provided by the price comparison specialist showed average freight rates between the two destinations stand at $2,564 (£1,706) for a 40 ft container and $1,341 for a 20 ft vessel.

The market for 40 ft containers has dropped by 44 per cent when compared with May 2012 and this is mainly down to the struggling economy and overcapacity.

Xeneta's sea freight index has been on a downward trajectory in the last few months and it seems that many of the popular trade corridors between Asia and Europe, such as the Shanghai to Rotterdam route, have been badly affected.

This is in stark contrast to air cargo, as a recent study by TalkTalk suggested that international retailers are having to charge more to transport items to the UK because of rising air freight costs.