In addition to the overall SCFI reading, rates from Shanghai to Northwest Europe, the Mediterranean and the United States have all fallen for the past three consecutive weeks.
Spot container rates, as measured by the Shanghai Shipping Exchange’s Shanghai Containerized Freight Index (SCFI), declined from last week’s reading of 544.33 to a reading of 484.14.
The overall SCFI includes spot rate estimates from Shanghai to 15 different regions around the world.
In addition to the overall SCFI reading, rates from Shanghai to Northwest Europe, the Mediterranean and the United States have all sank for the past three consecutive weeks.
Since last week, rates from Shanghai to Northwest Europe dropped 28 percent from $409 per TEU to $295 per TEU.
“The latest decline means the November GRI has nearly all but eroded in just four weeks, again proving that the carriers strategy of monthly GRI’s is ineffective at offering any meaningful and long term respite to rate declines,” Richard Ward, a container derivatives broker at Freight Investor Services, said in a statement.
However, come Dec. 1, Hapag-Lloyd will increase rates from East Asia (excluding Japan) to all North Europe and Mediterranean destinations, the German ocean carrier said. CMA CGM said it will increase rates from all Asian ports to all North European ports; and the Far East and Japan to the Mediterranean, Adriatic, Black Sea and North Africa, effective Dec. 1. In addition, Maersk Line will increase rates from Far East Asia (excluding Japan) to the Mediterranean, effective Dec. 1, the Danish ocean carrier said.
Since last week, rates from Shanghai to the Mediterranean fell 22 percent from $406 per TEU to $315 per TEU.
Rates from Shanghai to the U.S. West Coast dropped 9 percent from $1,009 per 40-foot container (FEU) to $922 per FEU since last week. This represents the first time since August 2009 that the trade has been under the physiological $1,000 mark, Ward said.
Rates from Shanghai to the U.S. East Coast fell 8 percent from $1,834 per FEU to $1,688 per FEU since last week.
Maersk Line said it will increase rates from Far East Asia to the United States, effective Dec. 1.
With the comprehensive index being so low, carrier’s will be entering the annual contract season with very little negotiating power, Ward said.
“As already seen on the European trades this will in turn lead to lower annual contract rates and raises the question of whether carriers will begin to shun loss making contracts in favor for taking more spot or index linked cargo for 2016,” he said.
Spot container rates sink 28% to Northwest Europe
