Sizeable GRIs by Asia-North Europe ocean carrier will come into force next week. However, there are already signs that only a few of these will be sustained.
The Loadstar performed a straw poll of their shipper and forwarder contact that revealed that major carriers are only likely to achieve about 50% of their 1 August FAK rate increases. Although, the same carriers are then offering discounts on the GRIs from the second half of the month.
Meanwhile, Xeneta’s container spot rate component for Asia to North Europe slid a further 1.5% this week, for an average of $1,188 40ft, while some market rate ducked under the $1,000 watershed again.
Maersk’s 3 July GRI advisory of a minimum 40ft FAK rate of $1,900, which is effective from the 1st August from Asia to the main North European hubs has resulted in almost all the major lines following.
Although, forwarding contracts doubt they can achieve the full quantum, with some shippers deciding to postpone loading dates, hoping that rates will fall back again.
The Loadstar, the industry’s leading news source, this week received an unsolicited email quotation, that reflected the GRIs, of $1,350 per 40ft from a Chinese forwarder. Available from the main ports in China to the Le Havre-Hamburg range the rate is valid from the 1st to the 14th August, with prompt shipment available “via all major lines”. The email also stated “A better price is available for later shipments.”
On the tradelane, peak season demand is subdued, and more than 1.2m teu of newbuild tonnage is stemmed for delivery before the end of the year. This includes several 24,000 teu behemoths which will be deployed on the route. Resulting in Asia-North Europe carriers having to be judicious in their capacity management to avoid a further rates collapse.
On the Asia-Mediterranean tradelane this week rates were flat, with Drewry’s WCI reading holding at $1,893 per 40ft.
North Europe, Asia-Med carriers are also seeking a huge FAK rate hike in August, which could not be nullified by a big increase on the route. This included HMM’s new China-India-Med loop, which commences next month.
In contrast to Asia-Europe, the transpacific tradelane is showing further signs of a recovery, seeing another jump in Asia-to-US spot rates this week. The Freightos Baltic Container Index (FBX) recorded an increase of $161 per 40ft, or 12% this week for spot movements from Asia to the US west coast – taking the average rate up to $1,526 per 40ft.
A more modest increase if 3% was recorded by the FBX for the US east coast. Industrial action at Canada’s west coast ports, pushing cargo via US west coast ports has been the main attribute of the higher west coast increases.
On the transatlantic, spot rate erosion continued, with Drewry’s WCI North Europe to US east cost average rate falling to $1,590 per 40ft, a decrease of 3% on the week. Resulting in a 77% year on year decline.
For any further details on huge Asia-N Europe rate hikes or to get the most up to date shipping rates, please contact your local CCi account manager on +44 0113 271 1555 or info@carrycargo.com.
