The spot freight rates on key container transportation routes from Asia to Europe returned to downtrends during the last week, while the cost of shipping containers to US ports grew. The value of the Shanghai Containerized Freight Index (SCFI) for the ports of northern Europe declined by 4.5% at the end of last week to 933 USD per TEU, while the rate index to the Mediterranean ports fell by 2.6% % to 920 USD per TEU. The spot rates returned to negative trend, despite of the attempts of the shipping carriers to reduce the capacity and normalize the market conditions. Since beginning of April entered into force two new shipping alliances, which reorganized the routes to Europe, but obviously the market continue to have excess of capacity.
The announced increase in rates since June 1 resulted in a 12% increase in rates for the US West Coast ports to 1,413 USD per FEU, while the rates for the east coast ports rose by 9% over the week to 2,428 USD per FEU.
The average value of the SCFI index at the end of last week was 894.86 points, which is 52% higher than the level of the same period last year. At the same time, rates in all key areas of transportation are much lower than the level of the beginning of May.