Asia-Europe rates still high in August, but peaked in July

ASIA-EUROPE rates held up well in August according to the Container Trade Statistics (CTS) with the westbound average rate going up 19 per cent, which followed July`s 19 per cent, June`s 17 per cent, May`s 14 per cent and April`s 16 per cent year-on-year increases.

Carriers did worse on the backhaul though, according to CTS, with the overall eastbound rate from Europe was 12 per cent higher than the average achieved in 2008, down from July`s 16 per cent and June`s 17 per cent year-on-year increases.


Asia-Europe headhaul improvement contrasts with a drop in spot freight rates from Shanghai recorded by the New Shanghai Containerised Freight Index, where the average spot rate to northern Europe at the beginning of the month was US$1,890 per TEU, which fell to $1,785 per TEU by the beginning of September, reported London`s Containerisation International. It then fell to $1,690 per TEU on September 17.


From Shanghai to the Western Med, spot rates fell from $1,838 per TEU to $1,770 per TEU at the beginning of September, and then continued to fall to $1,685 per TEU on September 17, said the report.


London`s Drewry Shipping Consultants noted that average spot rates from southern China to the UK peaked in July at $4,170 per FEU, then fell to $3,950 per FEU in August and on to $3,800 per FEU in September.


Spot rates had little influence on the overall average achieved by carriers in August, including spot cargo, due to the much greater proportion of cargo shipped under contract, said the report.