The success of this GRI was due in part to discipline by the carriers, which was not the case in the unsuccessful GRI of Sept.1, said Jean-Marie Lamay, Head of Commodity and Freight Solutions at HSH Nordbank. The initial success of this GRI was slightly higher than anticipated, but the market is expected to slide in November due to the fact that fundamentals have not changed enough to warrant rates at this level. It is encouraging to see the market can move up by so much so fast, which shows that the layer strategy of hedging by the carriers can work to balance out the decline of rates.
The spot rate from Shanghai to Mediterranean ports jumped 111.7 percent or $791 from the week before to $1,499 per TEU, up from $708, according to the latest SCFI data issued by the Shanghai Shipping Exchange. This was a rebound from the recent 10-week slump in which rates fell by a composite $788 per TEU. The SCFI to the Mediterranean is now up 42.1 percent year-over-year and up 29.4 percent from Jan. 1.
Shanghai Containerized Freight Index, North Europe, week ending Nov. 1, 2013The spot rate from Shanghai to northern European ports for the week ending Nov. 1 climbed 112.4 percent or $753 from the week before, when it sat at $670 per TEU, reaching $1,423. The SCFI rate to northern Europe for the week ending Nov.1 is 4.6 percent below where it was at the same point in 2012, but 12.0 percent higher than at the beginning of 2013.
The Nov. 1 GRI on the Asia-Europe lanes was relatively successful thus far. OOCL, Hapag Lloyd, United Arab Shipping Co., Zim Integrated Shipping Services, Evergreen, CMA CGM, and ANL had all proposed increases of between $750 and $1,000 per TEU, whileMaersk Line had set a minimum increase of $600 per TEU.
