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.

Source: Container News


Related News

Four new container vessels in Chittagong-Colombo route to lessen export backlog
Four new container vessels in Chittagong-Colombo route to lessen export backlog

The Chittagong Port Authority (CPA) has approved plying of four new feeder vessels in Chittagong-Colombo route in a bid to lessen the mounting export cargo backlog at the inland container depots (ICDs).

2021 is a peculiar year for container shipping
2021 is a peculiar year for container shipping

This year is turning out to be a spectacular year in container shipping; freight rates are record high, more cargo than ever before is shipped on the transpacific trade lane specifically and globally in general, and the previous annual record on new orders for container ship capacity has just been breached – in less than eight months.

Greeks and Chinese dominate global fleet market
Greeks and Chinese dominate global fleet market

"The global fleet of cargo carrying ships consists of around 61,000 ships with a deadweight capacity of about 2,200 million tonnes. The ships owned by Greek and Chinese shipping companies contribute 34% of the total fleet’s deadweight tonne capacity," says Niels Rasmussen, chief shipping analyst at BIMCO.


main.add_cart_success