Rising rates create auction for space in Asia
All-in spot rates hit $2,000 per teu on westbound Asia-Europe
All-in spot freight rates on the westbound Asia-Europe trade have exceeded US$2,000 per teu as capacity remains tight.
The latest figures from the Shanghai Containerised Freight Index show all-in rates increased to $2,068 per teu last week, up $76 on a week earlier.
The figure was confirmed by a freight forwarder contact, who said lines had restricted capacity allocation for contract space in Europe and increased it elsewhere.
This had, essentially, created an auction for space in Asia, forcing forwarders and shippers to pay spot rates rather than contract rates.
However, he added that the shortage of capacity, which began in November and resulted in containers being rolled for up to two weeks, was easing.
Philip Damas of industry consultant Drewry said that if the figure was correct, it was the highest rates had been in at least 10 years, according to its database.
However, he said this was partly down to current high bunker surcharges being charged by the shipping lines as a result of increases in the cost of fuel.
Maersk Line’s current bunker surcharge for a 20ft container taken from China to the Netherlands stands at $530, which means fuel costs account for around 25% of the total cost.
At the peak of the market in mid-2007, all-in Asia-Europe container freight rates reached just under $1,800 per teu, according to Drewry’s rates database.
Meanwhile, in mid-August 2007, the Far Eastern Freight Conference was recommending a bunker surcharge of $312 per teu.
The latest figures from the Shanghai Containerised Freight Index show all-in rates increased to $2,068 per teu last week, up $76 on a week earlier.
The figure was confirmed by a freight forwarder contact, who said lines had restricted capacity allocation for contract space in Europe and increased it elsewhere.
This had, essentially, created an auction for space in Asia, forcing forwarders and shippers to pay spot rates rather than contract rates.
However, he added that the shortage of capacity, which began in November and resulted in containers being rolled for up to two weeks, was easing.
Philip Damas of industry consultant Drewry said that if the figure was correct, it was the highest rates had been in at least 10 years, according to its database.
However, he said this was partly down to current high bunker surcharges being charged by the shipping lines as a result of increases in the cost of fuel.
Maersk Line’s current bunker surcharge for a 20ft container taken from China to the Netherlands stands at $530, which means fuel costs account for around 25% of the total cost.
At the peak of the market in mid-2007, all-in Asia-Europe container freight rates reached just under $1,800 per teu, according to Drewry’s rates database.
Meanwhile, in mid-August 2007, the Far Eastern Freight Conference was recommending a bunker surcharge of $312 per teu.
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