Spot container rates from Asia to the U.S. East and West coasts measured by the Shanghai Containerized Freight Index saw little movement this week, as the decline seen in this lane recently slowed.
“These weekly rate moves are reflective, unlike on Asia-Europe, of a trade lane that is oversupplied and heading to a seasonally weak period of demand,” said Michael Rainsford, Freight trader for Morgan Stanley Commodities. “Looking at current spot price levels, it is worth highlighting that the spread between Europe and USWC rates, at $114 per container is at it tightest level since April 2010.”
The spot rate from Shanghai to the U.S. West Coast inched down 1.0 percent, or $17, from the previous week to $1,700 per FEU, according to SCFI data issued by the Shanghai Shipping Exchange. During the past four weeks, rates have declined roughly 10 percent, slipping $18 below the rate they stood at prior to the $167 per FEU that it gained in mid-November. The spot rate in the week ending Dec. 13 is 22.7 percent below the level in the same week last year and 23.5 percent less than at the beginning of 2013.
Shanghai Containerized Freight Index, U.S. East Coast, week ending Dec. 13, 2013The spot rate to the U.S. East Coast edged up 0.3 percent, or $9 per FEU, to $2,962 in the week ending Dec. 13. Despite the increase, the rate is $116 below where it stood before the GRI. The current rate remains is down 12.4 percent year-over-year, and down 11.8 percent from Jan. 1.
The member lines in the Transpacific Stabilization Agreement are now attempting a 2-stage rate increase, adopting general rate increases of $200 per 40-foot container, effective Dec. 20, 2013, and $300 per 40-foot container, beginning Jan. 15, 2014, for the Asia-to-U.S. trade lane. So far Hapag Lloyd, OOCL, and U.S. Lines have announced similar increases for mid-December.
