SCFI slips for third straight week

Rates from Shanghai to North Europe and the Mediterranean fell 13 percent and 13.2 percent, respectively, since last week, but several major ocean carriers plan to increase rates on these trades in the coming weeks.

   The Shanghai Shipping Exchange’s Shanghai Containerized Freight Index (SCFI) declined 6.5 percent since last week, from a reading of 563.22 to a reading of 526.39.
   Rates from Shanghai to the U.S. West Coast dropped 7.9 percent since last week, from $818 per FEU to $753 per FEU. In addition, rates from Shanghai to the U.S. East Coast fell 4.4 percent since last week, from $1,619 per FEU to $1,547 per FEU.
   Since last week, rates from Shanghai to Northwest Europe dropped from $606 per TEU to $527 per TEU, while rates from Shanghai to the Mediterranean fell from $869 per TEU to $754 per TEU, down 13 percent and 13.2 percent, respectively.
   In the coming weeks, various ocean carriers plan to issue general rate increases (GRIs) from Shanghai to both North Europe and the Mediterranean, which combined, hold a 30 percent weight on the overall SCFI. However, the effects from recent GRIs have quickly eroded.
   Danish ocean carrier Maersk Line issued a rate increase from Far East Asia (excluding Japan) to North Europe effective June 1 by $500 per TEU; and $1,000 per FEU, 40-foot high cube and 45-foot high cube containers. Maersk Line also plans to increase rates by the same amount on this trade June 15.
   CMA CGM of France plans to increase rates from Asia to the Mediterranean and North Europe effective June 1 by $450 per TEU (400 euros per FEU to Syria). The French carrier plans to increase rates by the same amount on this trade June 15.
   Japanese carrier “K” Line issued a rate increase from Asia to North Europe and the Mediterranean effective June 1 by $1,000 per TEU and $2,000 per FEU.
   Meanwhile, OOCL of Hong Kong plans to increase rates from the Far East (excluding Japan) to North Europe, the Mediterranean and the Black Sea effective June 1. Rates will increase by $850 per TEU.
   NYK of Japan also plans to increase rates from Asia to North Europe and the Mediterranean effective June 18 by $530 per TEU.
   German carrier Hapag-Lloyd issued a “Freight All Kinds” increase on the Asia to North Europe and Mediterranean trades effective June 1. Rates will increase by $1,075 per TEU, $2050 per FEU and $2,100 per 40-foot high cube containers.