Spot container rates fall on major trade lanes

Container derivatives broker at Freight Investor Services in London cites reports that Maersk is cutting rates to Europe.

   Spot container freight rates fell on major trade routers to the U.S. and Europe, according to panelists used by the Shanghai Shipping Exchange to develop components for the Shanghai Containerized Freight Index.
   The spot rates from Shanghai to the U.S. West Coast fell $128 to $1,519 per FEU; to the U.S. East Coast fell $95 to $3,215 per FEU; to Northwest Europe fell $203 to $658 per TEU; and to the Mediterranean fell $227 to $776 per TEU.
   Richard Ward, a container derivatives broker at Freight Investor Services in London, said, “Reports emerged this week that rates had been dramatically cut by Maersk Line on the Asia-Europe trade, who has been the victim of the markets broken pricing model. Previously agreed contract business has reportedly been moved away from the Danish carrier, which is a direct result of the historically low rates seen in the spot market and the inability to enforce previously agreed contracts.”
   He said Maersk has been “approaching the spot market to fill the void left by its deserted contract business. Unfortunately the only way to attract the additional cargo in a commoditised market is to slash rates. This has directly contributed to this week’s declines on the route, which are expected to continue for the coming weeks before a new round of GRI’s come into force from the 1st of June.”