Spot freight rates soar in wake of Hanjin insolvency

The Shanghai Containerized Freight Index jumped 27.9 percent since last week to a reading of 763.06, reflecting Hanjin’s decision to file for receivership.    The Shanghai Container Freight Index (SCFI) rose sharply this week, reflecting Hanjin Shipping’s decision to file for receivership, leaving various ships stranded and some carriers refusing to tender cargo to the South Korean liner carrier or receive its cargo, at least temporarily.
   The overall index for export container rates from Shanghai to ports around the world jumped 27.9 percent in the past week from a reading of 596.38 to a reading of 763.06. The rates are estimated on a weekly basis by a panel of executives from both carriers and intermediaries assembled by the Shanghai Shipping Exchange.
   Of the four major trades, rates increased most sharply to the United States. For cargo bound from Shanghai to the U.S. West Coast, rates surged 51 percent since last week, from $1,153 per 40-foot container (FEU) to $1,746 per FEU. For containers bound from Shanghai to the U.S. East Coast rates jumped 45 percent, from $1,684 per FEU to $2,441 per FEU.
   Meanwhile, from Shanghai to North Europe, rates rose 37 percent, from $695 per 20-foot container (TEU) to $949 per TEU, while rates from Shanghai to the Mediterranean, were estimated as falling 6 percent, from $553 per TEU to $519 per TEU.
   The Ningbo Containerized Freight Index, published by the Baltic Exchange, showed a similar trend with rates from Ningbo to Rotterdam and Hamburg up 15 percent, and from Ningbo to the Middle East down 18.6 percent, while rates to West Mediterranean and East Mediterranean ports were down 5.7 percent and 13.7 percent, respectively.