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Thai National Shippers’ Council
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Shpg Gazette 25/2/14 - SCFI Asia-Europe spot rate drops US$146 to $1,233/TEU in one week

THE Shanghai Containerised Freight Index (SCFI) shows a spot rate decline on the Shanghai-north Europe route of US$146 in single week to $1,233 per TEU with the Shanghai-Med run falling $150 to $1,264 per TEU.

Transpacific spot rates also fell $96 to the US west coast to $1,945 per FEU and by $69 to the east coast to $3,294 per FEU.

Container Trades Statistics figures show that last year, February was the weakest month on the Asia-Europe trade, but this year's rates are still ahead of last year's.

Not so for transpacific spot rates, which are lower than last year when Shanghai-US west coast rates were $2,364 per FEU and $3,516 per FEU to the east coast.

OOCL plans an Asia-north Europe, Med and Black Sea rate increase of $575 per TEU from March 18. CMA CGM also plans an Asia- north Europe hike of $500 per TEU from April. Hapag-Lloyd, China Shipping, Yang Ming and NYK Line also have such plans.

But container derivatives brokers doubt hikes will stick because they don't take effect the same day, which has been the preferred policy in the past.

"Since January rates have declined 30 per cent, representing a significant hit to carriers," a Freight Investor Services broker told Lloyd's List. "At current levels of erosion, rates could well be under $1,000 per TEU by the end of March."