Asia-Europe Shanghai box rate fell 13.3pc last week to US$809/TEU

2014-11-24

THE Shanghai Containerised Freight Index (SCFI) fell 13.3 per cent on Friday from the previous week to US$809 per TEU on the Asia-Europe route, suffering a third straight week of declines, each more than $100.

"The number of times the market has witnessed a weekly decline of over $100 has increased significantly over the past two years, said Richard Ward, derivatives broker at Freight Investor Services.

"Between 2010 and 2012 the market recorded just eight weeks when this was the case. However, since 2013 the SCFI has recorded 24 occasions," he said.

"From 2010 to 2012 the average increase was recorded at 10 per cent, with the largest weekly jump seen during this time recorded at 71 per cent," said Mr Ward.

"Since 2013, this has increased substantially ?the average increase is now a 32 per cent jump with the highest reported increase in percentage terms at 174 per cent," he said.

OOCL announced an $850 per TEU rate hike on Asia Europe cargo for December 7 and Hapag-Lloyd intends to levy and $800 per TEU one on December 15.

But success seems doubtful with so much capacity afloat and the arrival of the world抯 biggest box ship, the 19,100-TEU CSCL Globe expected to dock at Hamburg in January.

"Reports also indicate that vessel utilisation is below the key 90 per cent market, at 85 per cent, adding further doubt to the likelihood of a significant rate jump in December," said Mr Ward.

Source from : www.schednet.com

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