The Shanghai Containerized Freight Index comprehensive reading for Oct. 12 dropped by 3.6 percent, or $44.38, from the week of Sept. 28, to $1,202.96 per 40-foot-equivalent container unit, the Shanghai Shipping Exchange reported. No index was issued last week on account of China's National Day holiday.
The SCFI base port average spot rate to U.S. East Coast ports dropped for the third straight week by 3.8 percent, or $138, from the previous week, to $3,539 per FEU.
The base port average rate to U.S. West Coast ports also dropped by 5.1 percent, or $138, to $2,592.
"Demand for cargo space on trans-Pacific lanes to the West Coast started to wane when the International Longshoremen’s Union and U.S. Maritime Alliance agreed to extend their existing contract 90 days while they continue negotiations for a new contract," said JOC Senior Editor Peter Leach. "Importers realized they would have enough time left during the peak season to land their cargo on the East Coast without fear of a port strike."
The SCFI base average spot rate for European ports continued to decline, falling $45, or 3.9 percent, from the week before, to $1,113 per FEU. “The overcapacity of vessel space on the Asia-Europe trade continues to erode freight rates,” Leach said. “The overcapacity may shrink soon, however, now that Maersk line has said it will scrap one of its services and suspend another until December.”
Base spot rates for the Mediterranean took the same path, dropping 6.1 percent, or $74, to $1,130 per FEU.
The Shanghai Shipping Exchange produces the SCFI comprehensive index weekly, based on 15 component trade lanes.