THE Shanghai Containerised Freight Index (SCFI) fell 8.7 per cent on Friday from the previous week to a US$739 per TEU rate on the Asia-Europe route, suffering a fourth straight week of decline, Reuters reported.

Rates have now fallen $537 in just five weeks and are 26 per cent lower year on year when they stood at $1,000 per TEU. Prices have increased in 12 weeks this year, but fell in 35 and are now below the $1,000 per TEU breakeven level.

In the week to Friday, container freight rates fell six per cent from Asia to ports in the Mediterranean, and dropped 11.7 per cent to ports on the US west coast and were down 3.6 per cent to ports on the US east coast.

The fall in rates completely erase any gains that would have been made from December 15 general rate increases, says Freight Investor Services broker Richard Ward.

It looking unlikely that carriers will be able to achieve the increases that were witnessed last year when rates prior to the Chinese New Year jumped to over $1,700 per TEU,?said Mr Ward.