Spot rates for trans-Pacific trade fell for the second week in a row, while pricing on Asia-Europe trade lanes improved for the week ending Aug. 5, according to the Shanghai Shipping Exchange Shanghai Containerized Freight Index.
The SCFI for Asia-Europe expanded for the second week in a row, growing 2.1 percent, while the index for the trade between Asia and the Mediterranean increased by 3.2 percent. By contrast, the index for the spot rate for shipments from Asia to the U.S. West Coast declined by 1.1 percent week-over-week, and to the U.S. East Coast by 0.4 percent.
The decline in the trans-Pacific measures parallels the decline in the Drewry Container Rate Benchmark for average spot rates for shipping an FEU unit form Hong Kong to Los Angeles, which dropped by 6.8 percent in the week ended Aug. 1 to their lowest point in 20 months.
By the Numbers: SCFI - Shanghai Containerized Freight Index
The continuing decline in trans-Pacific rates throw into question the ability of the 15 carrier members of the Trans-Pacific Stabilization Agreement to collect the peak season surcharges of $400 per 40-foot equivalent container unit that they plan to implement as of Aug. 15.