The Shanghai Containerized Freight Index in Europe lanes continued to decline this week despite general rate increase attempts. The next GRIs in this trade lane are set for mid-May. Hapag-Lloyd, Cosco and UASC have proposed increases of between $500 and $600 per TEU.
“The plan to postpone the previous April increase until the 1st of May has not come to fruition, and now carriers will desperately be hoping that something can be implemented on the next attempt, which is scheduled for the middle of May. At present, it is unclear if this plan will work, with reports suggesting that some carriers are offering rates valid until June,” said Richard Ward, research analyst for container derivatives of ICAP PLC.
Rates to northern European ports fell for the seventh week, down 2.7 percent or $22 to $796 per TEU in the week ending May 3, according to the latest SCFI data, issued by the Shanghai Shipping Exchange. Rates have declined 44 percent or $627 during the seven-week slump. The current SCFI index to northern Europe is 59 percent lower than it was at the same point in 2012, and 37.3 percent lower than it was on Jan. 1.
The spot rate from Shanghai to Mediterranean ports also fell for the seventh consecutive week, down 2.2 percent or $19 from last week to $841. This rate declined 38.4 percent or $525 in the seven-week period. The index is currently 58.6 percent lower year-over-year and 27.4 percent below where it was at the beginning of 2013.