General rate increase pushed container spot rates by 36.7%

Container spot ratesSpot rates for containers transportation for Week 26 increased average by 36.7% amid the General rate increase (GRI), announced by carriers on all major areas. The Shanghai Containerized Freight Index (SCFI) rose to 752 points during the week, representing and increase of 202 points on week-on-week basis. The spot rates for transportation of containers from Shanghai to North European ports increased significantly by 77% to 1,206 USD/TEU, while the spot rates to Mediterranean Sea ports grew by 51% to 1,172 USD/TEU. The reached levels are highest since the peak in the beginning of 2016, but far away from the rates in 2014 and beginning of 2015.

The spot rates on Transpacific routes also reported serious growth. The freight rates for transportation of containers from Shanghai to West Coast ports in North America rose by 60% to 1,2-9 USD/FEU, while rates to East Coast ports in North America grew by 19.3% to 1,785 USD/FEU.

The freight rates on other routes also had some growth. The freight rates for transportation of containers from Shanghai to Middle East also grew by 11.1% to 401 USD/TEU, while rates to Australia grew by 31.4% to 414 USD/TEU.

According to the analysts in the sector, despite of the General rate increase (GRI), the prices will remain at lower level in comparison with 2014 and beginning of 2015. The reason is continuing delay of Asian economy, political uncertainty in Europe and North America, as well as overcapacity on the shipping market.