Freight rates lose gains after three weeks

Long-haul freight rates have given way to the lack of capacity discipline, as the Shanghai Containerized Freight Index (SCFI) lost ground after three weeks of gains.

On 18 August, Asia-North Europe rates fell to US$852/TEU, down from US$926/TEU the previous week, while Asia-US West Coast rates dipped to US$2,003/FEU, from US$1,507/FEU on 11 August.

Linerlytica said that market sentiment has turned negative again, as recent rate increases have failed to hold, adding, “The setback will make it harder for carriers to push for the next round of rate hikes in September, with no signs of capacity management in place.”

Linerlytica noted that the idle fleet remains low even as newbuilding deliveries are ongoing.

Hurricane Hilary has not materially affected operations at Los Angeles and Long Beach ports, which reopened on 21 August after partially closing on 20 August.

Rates to the US East Coast were more resilient, with capacity reduced due to Panama Canal draught restrictions. Rates went up marginally, to US$3,110/FEU, from US$3,071/FEU on 11 August.

Maersk Line has added nine extra US East Coast sailings since July, but will withdraw these extra loaders and divert these to the US West Coast in September.

Martina Li
Asia Correspondent


Related News

FORWARDERS LOOK TO SHIPPER-OWNED CONTAINERS TO BOOST RELIABILITY
FORWARDERS LOOK TO SHIPPER-OWNED CONTAINERS TO BOOST RELIABILITY

1732 Views

With the pressure on equipment capacity showing no sign of abating, freight forwarders are increasingly turning to “shipper-owned containers (SOCs)” to minimise the risk associated with port congestion and potential penalties, amid Covid-induced supply chain dysfunction.

EMPTY CONTAINERS ACCUMULATE IN CHINESE PORTS, HIGHLIGHTING WEEK DEMAND
EMPTY CONTAINERS ACCUMULATE IN CHINESE PORTS, HIGHLIGHTING WEEK DEMAND

1260 Views

Within a space of a year, the catch-phrase in the liner industry has gone from "containers are hard to come by" to concerns of a container glut, as freight levels reverse to pre-Covid-19 lows.

Taiwan port authority warns insurer Hydor over Angel sinking
Taiwan port authority warns insurer Hydor over Angel sinking

1221 Views

Taiwan’s Maritime Port Bureau has warned Norwegian marine insurer Hydor that it could be blacklisted, alleging that the latter has failed to help facilitate the clean-up resulting from the sinking of container ship Angel on 21 July.


Comment
  • Your review
main.add_cart_success