Spot freight rate increases on the Asia-Europe trade in the fourth quarter (Q4) outstripped hikes on all other major lanes, with the price escalation on this and other major trades meaning that the transpacific has flipped from being the most lucrative to the least lucrative for carriers in just four months, according to analysis from Alphaliner.
The analyst’s review of carrier revenue from spot business per nautical mile on a range of trades inQ4 found that the biggest increases were on the Asia-Europe trade, where spot rates from Shanghai to North Europe and the West Mediterranean rose 327% and 297%, respectively.
“The spot rate between Shanghai and North Europe stood at $8,904 for a 40’ container (FEU) last week,” noted Alphaliner, explaining that “this rate is calculated as an average of the rate levels collected by the Shanghai Shipping Exchange in a weekly poll of carriers and large forwarders. The average rate does not include any premium for guaranteed booking.”
In reality, some cargo owners are already paying over $10,000 to get their cargo moving from China to Europe. As reported this week, multiple sources are reporting rates of US$10,500 per FEU to secure capacity from China to European main ports, with China-UK rates now topping $16,000 per FEU in what has become an auction for space. Huge Q4 rate increases were also seen from Shanghai to Melbourne (+96%), Lagos (+111%), Jebel Ali (+119%), Durban (+172%) and Santos (+288%).
Alphaliner noted that even though last week’s Shanghai Containerized Freight Index (SCFI) reading of 2,870 points was an all-time high, “spot rates are expected to continue their rise in the coming weeks as carriers continue to struggle with a shortage of ships/containers to meet the huge cargo demand”.
Source : Lloyd’s Loading List.