Spot rates on the Asia-North Europe trade trebled recently by 327% to $988 per TEU as some carriers appeared to recover the full November 1, 2015 general rate increases, according to the Journal of Commerce.
The rate narrowed to 25% lower than during the same week last year, a place it hasn't been for months, according to the Shanghai Containerised Freight Index (SCFI).
The SCFI reported that the price per TEU increased by $757, which was seen as the highest ever week-over-week rate rise.
November 1 increases ranged from $750-$1,200 per TEU.
Happy-Lloyd is reportedly planning a $950 per TEU rate hike on November 4, 2015.
A freight forwarder with offices in China and Hong Kong said: “There is something seriously wrong with the system when I can go from paying $300 per 40-foot last week to $1,200 this week,” as he expressed his views on the volatility of the market.
Read a Technical Paper on freight rates
Meanwhile, Alphaliner has noted that idle capacity is set to reach one million TEU within the next few weeks.
Alphaliner said: “The over-supply situation has become so serious that 23 vessels of above 7,900 TEU are currently without employment, including one 18,000 TEU ship. This Maersk Line vessel is scheduled to remain anchored for six weeks as a result the void sailings program on the Asia-Europe route.”
