The Shanghai Containerized Freight Index spot rates for U.S.-bound trade lanes from Shanghai continued to experience declines in the week of June 21, the fourth straight week of drops in these lanes. Rates have fallen by 12 percent or $248 per 40-foot container over the past four weeks in West Coast lanes, while East Coast-bound lanes are down by 8.3 percent or $270 per FEU.
“U.S. trades remain relatively unchanged with the market awaiting the outcome of the planned GRI’s in July. The market will be keeping a close eye on whether the TSA makes further recommendations to increase rates,” said Richard Ward, research analyst for container derivatives at ICAP.
The spot rate from Shanghai to the U.S. West Coast fell to $1,845 per FEU, down 2 percent or $36 versus the previous week, according to the latest SCFI data issued by the Shanghai Shipping Exchange. The current spot rate declined 31 percent year-over-year, the 11th straight decline, and is 17 percent or $376 below the level seen at the beginning of 2013.
The spot rate to the U.S. East Coast fell 1.6 percent or $47 per FEU to $2,984, now below the $3,000-per-FEU mark for the first time since early March 2012. The current index is down 21.6 percent from the same week in 2012 and down 11 percent or $374 since the beginning of 2013.
The Transpacific Stabilization Agreement has recommended a GRI of $400 per FEU from Asia to the U.S. West Coast and $600 to all other U.S. regions for July 1.