Spot rates on the Asia-Europe trade continued their volatile mid-summer ride, rising $412 in the past week to $1,125 per TEU to North Europe ahead of the Aug. 1 rate increases, according to SCFI. Asia-Mediterranean spot rates also came bounding back, rising $340 over last week’s price to hit $1,004 per TEU, an increase of 34%. It is the second sharp increase in rates on the two trades during the month of July, both driven by GRIs. On July 1, the rate shot up from $680 per container to $1,206 per TEU, and this Friday, it leapt 37% from $713 per TEU to $1,125 a box.
The spot rates on Asia to Europe and the Mediterranean have always been volatile and July’s ups and downs did not disappoint. Looked at across the five Fridays since July 1, the rate has actually achieved a net loss of $81 despite the big increases in the first and the last weeks of the month. The Aug. 1 rate increases being levied by container lines on the Asia- Europe and Mediterranean trades are pushing container shipping prices up.
OOCL will be implementing an $850 per TEU increase on the Asia to North Europe, the Mediterranean and the Black Sea trades from Aug. 1. CMA CGM has informed the market of its intention to implement a rate restoration program of $600 per TEU on Asia-North Europe and $300 per TEU to the Red Sea ports. Hapag-Lloyd said it will increase its FAK (freight all kinds) rate on the Asia-Europe and Mediterranean trades by $1,150 per TEU and $2
,200 per FEU. Hapag-Lloyd is one of 14 carriers that have agreed to make their pricing practices more transparent by swapping GRI announcements for an FAK rate. Maersk Line has also adopted the practice and this week told its customers it was setting the maximum freight rate from Asia to Europe at $1,250 per TEU. However, a rate spike just before a GRI is not enough to make a difference, and consistently dismal freight rates continue to drag down carrier revenue.
JOC