Transpacific box freight rates continue to rise
Mon, 7 Nov 2011
Increase in rates a reaction to lines cutting services
Transpacific box freight rates have continued to creep up in the past week. The World Container Index and the Shanghai Containerised Freight Index’s China-US West coast prices have both moved back above $1,500 per day, while Drewry’s Hong Kong-Los Angeles rate has also taken an upward turn.
The WCI reported a transpacific rate of $1,531 per feu, up $77 from the week before. This was a bigger jump than the $6 improvement in the SCFI’s price for this route, which closed at $1,500 per feu.
A report in IFW’s sister publication, Lloyd’s List, notes that, in contrast, the WCI’s Shanghai-Rotterdam freight rate was down $126 over the week to $1,130 per feu, and the SCFI China-Europe price fell $36 to $613 per teu.
There have been suggestions that the increase in transpacific rates over the week — Drewry’s index was up 4% to $1,543 per feu — could be a reaction to a number of lines cutting services on the trade lane as it becomes an uneconomical market in which to operate.
Fewer competitors means those still running on the route can charge marginally higher prices, but the market is waiting to see whether this is simply a blip in the market.
Seasonal fundamentals point to a negative remainder of 2011. With carriers starting to report their third-quarter results and substantial losses anticipated for some of the biggest, transpacific rates could be on the slide again soon
The WCI reported a transpacific rate of $1,531 per feu, up $77 from the week before. This was a bigger jump than the $6 improvement in the SCFI’s price for this route, which closed at $1,500 per feu.
A report in IFW’s sister publication, Lloyd’s List, notes that, in contrast, the WCI’s Shanghai-Rotterdam freight rate was down $126 over the week to $1,130 per feu, and the SCFI China-Europe price fell $36 to $613 per teu.
There have been suggestions that the increase in transpacific rates over the week — Drewry’s index was up 4% to $1,543 per feu — could be a reaction to a number of lines cutting services on the trade lane as it becomes an uneconomical market in which to operate.
Fewer competitors means those still running on the route can charge marginally higher prices, but the market is waiting to see whether this is simply a blip in the market.
Seasonal fundamentals point to a negative remainder of 2011. With carriers starting to report their third-quarter results and substantial losses anticipated for some of the biggest, transpacific rates could be on the slide again soon
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