© Terrance Emerson seaport_2229158
© Terrance Emerson

Container spot rates from Asia to Europe and the US ticked down a few percentage points this week, after the previous week’s big gains.

However, with another wave of rate increases announced for mid-May from Asia to Europe, including new FAK rates from Maersk, MSC and CMA-CGM, it is expected that shippers will be asked to pay premium rates if they need boxes shipped promptly.

And this all against a continued background of schedule disruption and rolled-over boxes.

Anecdotal reports from China suggest that spot rate containers booked for North European ports are being given a low priority for shipment by carriers treating the boxes just as “top-up” cargo.

One major international forwarder told The Loadstar in London yesterday he was having to pay surcharges on top of his agreed contract rates to guarantee shipment for priority customers.

He said: “We are coughing-up, where we have to for our VIP clients and we are swallowing the extra, but obviously that can’t continue.”

He added that his company would make carriers he thought were taking unfair advantage pay in the long term.

“We have long memories,” he warned.

This week, the Shanghai Containerized Freight Index (SCFI) recorded a 2.4% fall in spot rates to North Europe to $996 per teu, and a drop of 2.3% for Mediterranean ports to $988 per teu.

Meanwhile, for the US, rates were down by 3.2% to the west coast, at $1,555 per 40ft, and for US east coast ports there was a 2.2% decline to $2,567 per 40ft.

It is worth noting the comparison with a year ago, when the SCFI recorded a rate to North Europe of $636 per teu and for the Mediterranean $873 per teu; for the US west coast $863 per 40ft and US east coast at $1,683.

Lars Jensen, CEO and partner at SeaIntelligence Consulting, believed the Asia-North Europe tradelane was seeing “the most stable spot market conditions in half a decade”.

He added: “Whether this indicates a lasting pattern or not for 2017 is too early to conclude. Essentially, we need to wait for the market to balance and the new alliance networks to stabilise.

“But it is clear that during the [networks] phase-in period, the rate war has been called off by all parties.”

On backhaul from North Europe to Asia, which in past months has seen rates skyrocket due to a chronic capacity shortage, Drewry said today that “space is no longer a challenge for shippers” on the route, noting also that its World Container Index (WCI) spot rate component for Rotterdam to Shanghai shed 20% this week, down to $1,255 per 40ft.

This is good news for shippers in North Europe frustrated by weeks and months of uncertainty on space availability and pricing, which in some instances has resulted in the cancellation of contracts and loss of potential new business.

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