Container freight rates from Asia continued to surge this week, reaching highs far in excess of long-term sustainable levels.
Today’s Shanghai Containerized Freight Index (SCFI) cumulative reading hit a new record of 2,311.71, representing a 162% increase on the same week last year. After initially lagging behind the massive rate gains seen on the transpacific, spot rates to North Europe now lead the rate race in terms of percentage increase, 230% higher than a year ago.
The North Europe component of the SCFI jumped 24% on the week, to $2,948 per teu, while spot rates to Mediterranean ports put on 29% to breach the $3,000 mark, at $3,073 per teu. However, reports to The Loadstar this week imply that actual rates paid by shippers to secure containers and the last remaining slots to Europe are significantly higher.
Lars Jensen of SeaIntelligence said anecdotal evidence suggested the exact rates shippers were paying on the Asia-North Europe tradelane could be up to $5,000 per teu.
“In this context, it should be noted that the market is at a point where the SCFI is, in some cases, significantly underestimating the actual rates paid, as there are additional fees related to equipment and space availability,” explained Mr Jensen.
One UK forwarder confirmed to The Loadstar this week that rate quotes had hit the $10,000 per 40ft high-cube on Asia-North Europe. “It’s gone mad,” he said.
Moreover, the actual rates could be irrelevant if other carriers follow the lead of CMA CGM. The French carrier has advised its Asia-North Europe customers of a “booking freeze” for weeks 49, 50 and 51, “due to the strong demand for containers from Asia and the backlog in recent weeks”.
And another carrier has told Asia-North Europe customers this week it was looking to implement a $1,000 per teu fee if a shipment is cancelled within two weeks of the loading date.
It is said, NVOCCs were involved in “a mad scramble” to secure space, with BCOs increasingly turning to the services of the consolidators to get their goods away at any price.
