News / Asia-North America ocean rates in double-digit bounce-back

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Continuing rate rises on Asia-Europe ocean trades may have been the main story in recent weeks, but other trades are getting in on the act.

Asia-North America, for example, recorded a double-digit bounce after the disastrous decline recorded last week.

Now into its third consecutive week-on-week rise, largely propelled by European trades, Drewry’s World Container Index (WCI) recorded an 8% uptick on Shanghai-Rotterdam, to $2,539 per 40ft, with Shanghai-Genoa climbing 10%, to $3,314 per 40ft.

WCI reported: “Spot rates on the Asia–Europe trade have successfully maintained stable or rising rate levels for three consecutive weeks. This strength is driven by a shift in seasonal patterns.

“Over the last three years, Drewry has recorded a double-digit MoM demand growth in December, establishing strong year-end volumes as the ‘new normal’. Carriers are already recording early bookings ahead of the impending lunar new year in February.”

Resultantly, it said it expected to see “further slight rate increases next week,” no doubt being supported by the introduction of carrier FAK [freight all kinds] hikes, including by CMA CGM, Hapag-Lloyd, and MSC, on Monday.

Also, Maersk announced it would be implementing a peak season surcharge from 23 December, of $1,000 per 40ft, on Asia-Mediterranean shipments.

But, perhaps more newsworthy is the change on North American trades.

The index noted: “Following the previous week’s decline, that pushed spot rates to their second-lowest level since January, rates on the transpacific headhaul recovered this week.” It added that 10 blanked sailings had been announced for the next week on the tradelane.”

That recovery came in the form of double-digit bounces on both Asia-east coast and Asia-west coast US sailings, the WCI Shanghai-New York spot index surging up 19%, hitting $3,293 per 40ft, following last week’s disastrous 5% decline.

Similarly poor last week was the Shangai-LA leg, experiencing an 8% week-on-week decline as carriers struggled to balance capacity; but  rates managed to rebound this week, climbing 18% to $2,474 per 40ft.

Vespucci Maritime CEO Lars Jensen noted that, despite the double-digit upswing, rates on the Asia-North America trades had only returned to levels seen in mid-November, and warned against looming capacity increases all round.

He said: “Unless we see more blanked sailings, this will cause a significant downward pressure on rates. Presently, Sea-Intelligence data shows all carriers plan four blanked sailings to North Europe and three to the Mediterranean in January.

“We should, in this context, also note that CMA CGM is operating a few services into the Med using the Suez routing, which provides a faster transit time than competitors going around Africa, and from that perspective, a premium product.”

Additional Suez transits may be on the way from other carriers, Maersk reportedly having tested a sailing through the Red Sea using the Singapore-flagged 6,500 teu Maersk Sebarok, on its MECL service connecting India to the US east coast.

Meanwhile, Xeneta’s XSI recorded month-on-month and week-on-week growth on Asia-Europe sailings, its Far East-North Europe trade up 6.43% on last week, to $2,516 per 40ft, 7.43% up on November.

Where its North Europe-US east coast trade essentially flatlined week on week, and month on month, with rates at $1,573, its Far East-US west coast trade saw a 12.1% week-on-week bounce, to close out at $2,049 per 40ft, although this is still 9.9% short of where it was last month.