SCFI falls 3.6%

Rates from Shanghai to Northwest Europe and the Mediterranean declined 6.9 percent and 6.6 percent, respectively, since last week, however various ocean carriers plan to increase rates from Asia to North Europe and the Mediterranean May 1.    The Shanghai Shipping Exchange’s Shanghai Containerized Freight Index (SCFI) declined 3.3 percent from last Friday’s reading of 489.68 to a reading of 472.07.
   Since last week, rates from Shanghai to Northwest Europe fell 6.9 percent, from $291 per TEU to $271 per TEU, while rates from Shanghai to the Mediterranean fell 6.6 percent, from $438 per TEU to $409 per TEU.
   However, Maersk Line, CMA CGM, OOCL, COSCO, CSCL and “K” Line will look to increase rates from Asia to North Europe and the Mediterranean May 1, while UASC plans to increase rates on the Asia to North Europe trade during this time.
   However, even if general rate increases are successful, rates are likely to come under pressure again, Richard Ward, a container derivatives specialist at Freight Investor Services said. “According to data from Xeneta, since Q2-2015 spot rates on average have remained lower than long term contracts on the trade, raising the question as to whether the time and effort associated with negotiating fixed contracts outweighs the benefits,” Ward said.
   In addition, rates from Shanghai to the U.S. West Coast fell 9.3 percent since last week, from $849 per forty-foot container (FEU) to $770 per FEU, while rates from Shanghai to the U.S. East Coast dipped 4.8 percent, from $1,732 per FEU to $1,648 per FEU.
   Meanwhile, the World Containerized Index’s (WCI) composite index, which includes spot rates from 11 east-west container shipping routes, fell 3.3 percent yesterday, compared to the prior Thursday, from $868 per FEU to $839 per FEU.
   The Ningbo Containerized Freight Index (NCFI), a composite of prices for 20-foot, 40-foot and high cube containers, dropped 10 percent from Ningbo to Europe since last Friday, from 218.10 to 196.30. The index also dipped 3 percent from Ningbo to the East Mediterranean, from 336.70 to 326.52. On a bright note, the NCFI inched up 2.1 percent from Ningbo to the West Mediterranean, from 336.90 to 343.86, while jumping 6.5 percent from Ningbo to the Middle East, from 517.64 to 551.44.