Spot rates on container transportation from China to Europe returned to growth

CMA CGM Jules VerneThe spot freight rates on key container transportation routes from Asia to Europe and the Middle East countries returned to growth last week, while the cost of shipping containers in the US continued to fall. The value of the Shanghai Containerized Freight Index (SCFI) for the ports of northern Europe increased by 5.7% at the end of Week 21 to 977 USD per TEU, while the rates with destination the Mediterranean ports increased by 3.4% to 945 USD per TEU. The spot freight rates on East-West routes returned to harmonized uptrend after the implementation of the vessel sharing agreement of THE Alliance and Ocean Alliance in beginning of April 2017, which caused restructuring of the routes of the major carriers.

However, the value of the SCFI index on the ports of the western coast of the United States decreased by 3.5% to 1,264 USD per FEU, while the rates towards the ports of the east coast fell by 3% to 2,229 USD per FEU.

The cost of shipping a container from China to the ports of the Persian Gulf has grown by 6.3% and is now 764 USD per TEU.

According to analysts, the rates for transportation on all main routes will resume growth next month after the planned introduction of extra charges on June 1.