CN

A-E rate off 15.6pc to US$205/TEU, transpacific off 5.4pc to $1,268/FEU

Time：2015-06-23 Browse：52 Author：RISINGSUN
SPOT rates from Asia to north Europe fell 82 per cent last week year on year and 15.6 per cent week to week to US$205 per TEU, according to the Shanghai Containerised Freight Index (SCFI), reported the Journal of Commerce. 

The Shanghai-Med SCFI rate fell 84 per cent year on year and 12 per cent week to week to $312 per TEU while prices to the US west coast fell 30 per cent year on year and 5.4 per cent week to week to $1,268 per FEU as rates to the US east coast dropped 3.3 per cent to $2,904 per FEU.

Alphaliner estimates the Asia-Europe breakeven rate for carriers is $800 per TEU, but the spot rate has been above $800 only nine out of the last 24. 

"With fuel surcharges averaging $337 per TEU this month, carriers are actually subsidising shippers using the spot market to the tune of $132 per TEU. Profitability does not live down that road," said JOC.

A major Asia-Europe shipper`s annual contracts for 80 per cent of the containers it ships to the Netherlands cost 75 per cent more than what he would pay with the spot rate.

Annoyed, he said: "Even though I am a loyal customer and stick to my contract, I am treated by the lines the same way as the shipper who ignores his contracted volumes and switches to the spot market mid-year."

Citi Research in Hong Kong says its sources state that transpacific rates would fall to $1,000 per FEU mark, while the Asia-US east coast drop to $2,200 per FEU.