SCFI: Asia-Europe Rates Off More Than 20 Percent Since GRI

SCFI: Asia-Europe Rates Off More Than 20 Percent Since GRI

The Shanghai Containerized Freight Index continued to drop in European lanes three weeks after a general rate increase was implemented by Asia-Europe carriers. On March 15, around 60 percent of a proposed $700-per-TEU increase was achieved, but much of the gain was given back over the past three weeks.

SCFI, Northern Europe, released 4-3-13Shanghai Containerized Freight Index, North Europe, released April 3, 2013

In the report released April 3, rates to northern European ports were shown to be down 6.1 percent or $70 per TEU from the week before to $1,070. Spot rates are down 24.8 percent or $353 since the initial March 15 GRI that raised the rate to $1,423. The current index to northern Europe is 40 percent lower than it was at the same point in 2012, when it stood at $1,770, and 15.7 percent lower than it was on Jan. 1.

Rates from Shanghai to Mediterranean ports fell 4.9 percent or $55 this week to $1,073. This put the spot rate down 21.4 percent or $293 from $1,366 on March 15. The index is currently 39.3 percent lower year-over-year and 7.3 percent below where it was at the beginning of 2013.

The next attempt at a rate increase in this trade lane is scheduled for April 15 for carriers such as Hapag-Lloyd, Maersk Line, MSC and Cosco.