Asia-Europe weekly spot rates have dropped by the largest amount ever recorded in history after the Shanghai Containerised Freight Index (SCFI) noted a fall by US$276 to $833 per TEU, according to the Journal of Commerce.
According to SCFI data, the Asia-Mediterranean trade is also said to have continued along the same path, as its spot rate dropped from $240 to $879 per TEU, down from $1,119 last week.
Richard Ward of FFA, said: “Instead it’s a case of business as usual with further GRI’s being announced for September 1, . Both Hapag-Lloyd and NYK have announced increases of $1,000 and $970, respectively. However, can there be any hope of this latest round of increases being maintained? On current reflection it appears not.”
Kenneth Glenn, President of NOL liner arm APL, said: “We have seen enormous rate pressure in the Asia-Europe trade this year, as everyone knows, and that has had an impact on (beneficial cargo owner) rates we negotiated earlier this year.”
Spot rate volatility has previously exceeded 40% according to Drewry Shipping Consultants, with suggestions that shipping had reached a tipping point, as a result of overcapacity and weak demand, among other factors.