Freight Rate Rose Significantly in Early Days of 2018, SCFI Says

Damas Jati - , 04/01/2018, 11:47

Coming to the new year of 2018, the freight rate rose at any routes, according to the SCFI (Shanghai Containerised Freight Index).

Asia-North Europe spot prices have made a modest recovery, with average rates rising 8% to $864 per teu, while the Asia-Mediterranean trade saw a 23.8% jump in spot rates to $738 per teu. But the more significant development has been transpacific prices increases of more than 20% ahead of the transpacific contract season.

The SCFI shows a 29% increase in spot rates on the Shanghai-US west coast trade to $1,523 per loaded 40 ft unit (feu), and 23% rise on Shanghai-US east coast services to $2,418 per feu.

The recovery in spot prices on the transpacific follows a disappointing end to the year for container lines, where spot rate declines in November and December wiped out most of the price increases achieved during the peak season.

General Rate Increases by lines in mid-December had provided relatively little traction, with rates out of Asia to the US East Coast (USEC) and US West Coast (USWC) lifting only by about $100-150 per feu, leading to prices of around $1,700-$1,800 to USEC and $1,000-$1,100 levels to USWC in the final weeks of 2017.