Asia-Europe Container rates tumble to low for year

A container freight analyst said that he expects rates to continue to slide into November.    Asia-Europe container freight rates have fallen to their lowest point in a year.
   Richard Ward, a container derivatives broker/analyst at Freight Investor Services in London, said Friday that “after a week-long break, the market has resumed its usual downward trend with rates to North West Europe, falling a further $84 to $738″ per TEU.
   He continued, “The highs of over $1,400 a TEU back in August now seem like a distant memory, with rates falling 49 percent in 10 weeks. Worryingly for carriers, their planned general rate increase for October seems like a non-starter, with reports suggesting it will not be successful.”
   The overall SCFI was 911.03, down from 935.81 on Sept. 26. The overall index is not linked to any currency, but individual routes are quoted as estimates of spot rates, quoted in dollars.
   “In terms of rates, I expect a continued slide up until November when the carriers will push hard for further GRIs due to how low rates currently are. The jury is still out on whether increases in November will be successful given the apparent lack of winter adjustments being made by carriers,” said Ward.
   Ward said to the U.S. West Coast rates also declined to $1,891 per FEU. “Although this is not a new low for the year, rates have still fallen some 14 percent since August, suggesting carriers have struggled to maintain levels seen across the peak season both in the U.S. and in Europe,” he said.