The spot price of moving forty foot containers from Rotterdam to Shanghai jumped by more than 16% this week and by almost 40% compared with the same period last year.According to the World Container Index (WCI), published yesterday, the ‘backhaul’ rate has now hit US$1,004 compared with $863 one week ago. The rate was $464 at the end of December 2011.
The news follows an announcement this week that MSC will ‘restrict’ bookings on the Europe to Asia trade lane.
Philip Damas, of supply chain advisers Drewry, which assesses the WCI, told Lloyd’s Loading List.com that the rise could be the result of falling Asia-to-Europe demand combined with rising volumes in the other direction.
“Clearly the carriers are tightening capacity,” he said.
“But this may also be a sign that carriers are trying to offset the loss of revenue on the main Asia-Europe direction by trying to increase revenue in the Europe-Asia direction.
“The traffic volume from Asia to Europe is decreasing which, from the carriers’ viewpoint, is a poor situation, but traffic from Europe to Asia is still increasing.”
Asked about trends in the rest of the world, Damas said the global rates situation remains unsettled and that he expects further falls, despite a US$600 combined General Rate Increase (GRI) and Peak Season Surcharge (PSS) announced by Hapag-Lloyd on its Asia-Europe services this week, a move some expect to be replicated by other lines.
“We are still seeing a lot of volatility. In the south Pacific, rates appear to have peaked and have decreased by 6% between Asia and the US. I suspect the same will happen on Asia to Europe because they are high really.”
Damas said that he thought General Rate Increases (GRI) on the Asia to Europe direction were unrelated to rising costs going the other way.
Asked whether Hapag-Lloyd’s $600 PSS/GRI, pencilled in for August, stands much chance of success, Damas said simply: “I don’t think so.”
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