Shanghai Containerised Freight Index takes biggest loss

THE Shanghai Containerised Freight Index (SCFI) shed 10.65 per cent of its value in the last two months and posted its biggest-ever weekly loss last week when freight rates plunged to all main export destinations except Australia.

Based on Paris-based Alphaliner's calculations, weekly capacity on the Far East-US routes has increased 27 per cent since January while the Far East-Europe routes have experienced a 22 per cent increase.

The index ended last week at 1,413 points, down 37 points from a week earlier. The index has been falling steadily since the beginning of July when it reached a high of 1,583 points.

Spot rates from Shanghai to the US west coast fell US$68 per FEU last week while rates to north Europe fell by $80 per cent FEU. Carriers are reporting falling vessel utilisation levels as the impact of recent capacity introductions and a weaker than expected peak season are beginning to affect load factors.

Hardest hit were spot rates to Singapore, which fell 15 per cent last week from $367 per TEU to $320 per TEU as declining utilisation in long haul sectors began to spill over into transshipment feeder trades.

Rates to the Middle East have fallen since July, having dropped $370 per TEU in the last two months and falling by $46 per cent TEU in the last week alone.

Only Shanghai-Australia increased in the last two weeks, but was largely due to a raft of recent rate increases on a trade lane, which had suffered from a bout of over-capacity, prompting rates to fall 50 per cent since January. Given that, rates to Australia have risen by $185 per TEU in the last two weeks but are still down 36 per cent on the mid-January high.
(Source:www.schednet.com)