Shanghai-Europe spot freight rates fall to US$978 per TEU

Time:2011-04-15 Browse:39 Author:RISINGSUN

SHANGHAI-Europe spot rates fell to US$978 per TEU as of April 8, down $14 from the previous week, while Shanghai-Mediterranean rates shrank $15 to $963 per TEU during the same period, according to the Shanghai Containerised Freight Index (SCFI).

Though there are reports that prices are below the average bunker adjustment factor (BAF), London`s International Freighting Weekly cited one freight forwarder, saying "prices had not slipped to this level".


He said: "BAF is around $550-650 per TEU and rates, as far as we are concerned, are just about holding. My China agent informs me vessels are 90-95 per cent full again, the lowest rate any of my customers have been offered by other forwarders, via a carrier with an acceptable transit time, is US$900 per TEU," the forwarder said.


Some carriers, he said, were offering services as low as $1,400 for a FEU, but 95 per cent of importers would not accept their service as the transit time was more than 40 days.


According to the figures from IFW, the current BAF being charged by Maersk Line stands at $690 per TEU for a dry container, which is set to increase to $760 per TEU in May.


Likewise, the container derivatives broker GFI said he believed the Far East-Europe rates would not increase for weeks. "Despite carriers and some freight forwarders reporting utilisation levels of above 90 per cent, this is hardly justified by physical spot rates. If the momentum continues, then rates could reach $906 per TEU by the end of next week [April 22]," said the derivatives salesman.