Rates start to rise
August 3, 2011
Rates on services from Asia to Europe picked up last week for the first time this year, just prior to carriers bringing in price increases on Monday.
According to the Shanghai Containerised Freight Index (SCFI), all-in spot rates on services from Asia to Europe had risen by USD 6.00 from the week before.
This is around $600 per teu below the average rate on the trade lane at the start of the year, around $200 per teu less than those recorded at the end of Q1 and around $100 less than at the end of Q2.
The SCFI figures show prices had also increased on the Asia to the Mediterranean trade lane, from $918 per teu two weeks ago to $936 per teu last week.
Container brokers had mixed feelings on why rates had increased last week. Clarkson Securities suggested it could have been caused by an increase in bunker surcharges, but added that it could be a sign carriers had managed to turn the market in their favour.
“For the first time in 2011, the SCFI Europe assessment has returned a positive result – this small $6 increase may be the first signal that the rate decline trend has been turned around,” the broker said.
“Or, it could be nothing more than a blip in the spot rates caused by some posturing by shipping lines over bunker adjustment factor (BAF) and next week’s general rate increases (GRIs).”
Clarkson explained that, in line with stronger oil prices at the start of July, BAF levels had increased this week across the carriers surveyed. The average of its BAF survey rests at $763.22 per teu, just shy of the highs of June.
Another broker, ACM/GFI, suggested a shortage of 20ft containers could also be having an impact.
However, a freight forwarder contact told IFW had noticed a tightening of the market last week, and he was having difficulty finding space on sailings.
He said this was due to shippers finally starting to increase shipments for the peak season.
Both brokers questioned how successful the GRIs announced by carriers on Monday would be.
Clarkson said reports were being heard that customers holding rates valid this month had not been notified of any surcharges, from some carriers at least.
ACM/GFI added: “Having surveyed a number of industry participants this week, all said they did not anticipate the successful implementation of GRI on 1 August and expected to see one on 1 September.”
