Spot container freight rates continue to decline

Both the Shanghai Containerized Freight Index and the Ningbo Containerized Freight Index tumbled last week, continuing a worrisome trend for ocean carriers.    Container freight rates on the spot market are continuing to decline, a worrisome trend for ocean carriers, many of whom struggled to turn a profit in 2015 due to industry-wide overcapacity, weak volumes and falling rates.
   The Shanghai Containerized Freight Index, which is based on spot rates on 15 routes out of China to various destinations around the world, fell 19.16 points on Friday to close at 467.54.
   The components of the index for the four largest container trade all fell last week, according to the SCFI’s creator, the Shanghai Shipping Exchange.
   Spot rates from Shanghai to the U.S. West Coast were estimated by panelists to be $1,005 per 40-foot equivalent unit (FEU), which is $65 less than it was a week earlier, while the rate to the U.S. East Coast stood at $1,983 per FEU, down $91 from the previous reading.
   The rate from Shangai to North European ports was pegged at $257 per 20-foot equivalent unit (TEU), down $75 per TEU, and to Mediterranean ports at $266 per TEU, down $78 per TEU.
   The Ningbo Containerized Freight Index dropped even more sharply last week.
   From Ningbo to North Europe, the index fell to 195.66 from 278.70, a 29.8 percent drop in one week. Rates were also down to the Mediterranean, but up slightly to the Middle East.