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

Freight rates on Indian trades move up amid Suez Canal routing disruptions
Freight rates on Indian trades move up amid Suez Canal routing disruptions

After a long streak of declining trends, container freight rates on major trades out of India have begun to rise amid carrier routing disruptions through the Suez Canal, according to the latest market analysis by Container News.

TS Lines recovers investment through record vessel charter
TS Lines recovers investment through record vessel charter

Taiwanese intra-Asia carrier TS Lines has recouped the US$6 million it paid to acquire a 2007-built, 2,500TEU ship, after chartering out the vessel for a record amount.

OOCL 'may be on a winner' with innovative Asia-US land bridge-ocean offering
OOCL 'may be on a winner' with innovative Asia-US land bridge-ocean offering

OOCL has launched a rail-sea service from China to the US east coast, which it claims is a first.


main.add_cart_success