According to the Shanghai Containerized Freight Index (SCFI), rates on services from Shanghai to Europe hit $1,358 per teu last week, which is $42 less than the previous week.
This is the lowest level rates have been at all year, following a high of $2,164 per teu recorded in March.
The SCFI’s overall index, which covers 15 destinations from Shanghai, slumped 32.47 points last week, to hit 1,124.98, compared with 1,157.45 the previous week. It is the 23rd week in a row that the overall index has declined.
Rates on services to the Mediterranean also declined last week, falling $64 to hit $1,275 per teu.
In its weekly rate report, the Shanghai Shipping Exchange (SSE) said declining vessel utilisation was the reason for the drop in rates.
“Traders on the Europe service slowed down their shipment consignment and, as a result, the slot utilisation of the voyages [was around] 80%-85%, and the freight rate touched a record low in this year.”
In late November, SSE analysts estimated that vessels on Asia to Europe services were sailing at around 85-90% full.
However, SSE said rates would be likely to rebound in the post Christmas rush.
This is backed up by container derivatives trading, which, according to broker FIS, shows that bids for January are coming in at $1,350 per teu and offers are coming in at $1,465 per teu, giving a mid-point of $1,408. The mid-point prediction for February is $1,413 per teu.
Meanwhile, rates on services from Shanghai to the US west coast were $50 per down at the end of last week to hit $1,927 per feu, while rates on services to the east coast slid $26 to reach $3,146.
SSE analysts said vessels west coast services were sailing at about 80% full, while vessels on east coast services were sailing at around 70-75% full.
This is the lowest level rates have been at all year, following a high of $2,164 per teu recorded in March.
The SCFI’s overall index, which covers 15 destinations from Shanghai, slumped 32.47 points last week, to hit 1,124.98, compared with 1,157.45 the previous week. It is the 23rd week in a row that the overall index has declined.
Rates on services to the Mediterranean also declined last week, falling $64 to hit $1,275 per teu.
In its weekly rate report, the Shanghai Shipping Exchange (SSE) said declining vessel utilisation was the reason for the drop in rates.
“Traders on the Europe service slowed down their shipment consignment and, as a result, the slot utilisation of the voyages [was around] 80%-85%, and the freight rate touched a record low in this year.”
In late November, SSE analysts estimated that vessels on Asia to Europe services were sailing at around 85-90% full.
However, SSE said rates would be likely to rebound in the post Christmas rush.
This is backed up by container derivatives trading, which, according to broker FIS, shows that bids for January are coming in at $1,350 per teu and offers are coming in at $1,465 per teu, giving a mid-point of $1,408. The mid-point prediction for February is $1,413 per teu.
Meanwhile, rates on services from Shanghai to the US west coast were $50 per down at the end of last week to hit $1,927 per feu, while rates on services to the east coast slid $26 to reach $3,146.
SSE analysts said vessels west coast services were sailing at about 80% full, while vessels on east coast services were sailing at around 70-75% full.