Shanghai Containerized Freight Index spot rates for U.S.-bound trade lanes fell further in the week of May 10, with West Coast-bound rates falling below $2,000 per 40-foot container for the first time since March 2012.
“SCFI-assessed spot rates continue to slide as demand concerns remain strong and shipping lines resist removing any capacity,” said Benjamin Gibson, freight derivatives broker at Clarksons Securities. This was the fifth straight week of declines in both Asia-U.S. lanes.
The spot rate to the U.S. West Coast fell 3.4 percent to $1,997 per FEU this week. Ten days after a failed May 1 $800-per-40-foot container general rate increase to the West Coast, the weekly decline in this lane doubled from $35 last week to $70 this week. During the past five weeks, rates have fallen 13.2 percent or $305 in total. The current spot rate is down 16.5 percent year-over-year and is 10 percent or $224 below the level seen at the beginning of 2013.
The spot rate to the U.S. East Coast fell 2 percent or $61 per FEU from last week to $3,152, according to the latest SCFI data, issued by the Shanghai Shipping Exchange. During the past five weeks, rates are down a total of 8.7 percent or $302. The current index level is down 11 percent from the same week in 2012 and down 6.1 percent or $206 since the beginning of 2013.