Shanghai Shipping Exchange says container spot rates down

Decrease in spot rates comes despite a GRI announced by Transpacific Stabilization Agreement.    Despite the announcement last month by the Transpacific Stabilization Agreement that it had reaffirmed a March 9 general rate increase (GRI) of $600 per 40-foot container (FEU) for all shipments, and plans for a similar GRI on April 9, container freight rates as measured by the Shanghai Container Freight Index were lower on Friday than the previous week.
   The spot rate from Shanghai to the West Coast of the United States as determined by panelists on the Shanghai Shipping Exchange fell $86 to $1,835 per FEU. From Shaghai to the East Coast the spot rate fell $171 to $4,569 per FEU.
   Rates from Asia to North West Europe declined a further $108 this week to $708 per TEU, and rates from Asia to the Mediterranean fell $178 to $956 per TEU.
   Richard Ward of Freight Investor Services in London said rates from Asia to North Europe now “sit 20 percent lower than the corresponding period a year ago. The past week has seen a rush of GRI announcements of between $800-$1,000 per TEU as carriers look to stop the rot on the key east-west route. Rates have lost $548 over the past six weeks so it’s no surprise that the latest attempt to increase rates comes with such a large quantum.”
   At this point in time, however, there are question marks as to whether the fundamentals in the market, namely utilization, will be strong enough to support such an increase.