After Three Weeks, The Containerized Freight Index (CFI) Fell Below The 1,000-point Mark Again.

After last week's rise across the board, the main east-west trade routes of the container spot market index are back in the red.

 

According to shipping information, the Shanghai shipping exchange's latest data show that on November 17, the Shanghai export container composite tariff index fell again to 999.92 points after three weeks of falling below the important 1000 point mark!

 

Among them, the Shanghai port exported to the European basic port market tariffs (shipping and shipping surcharges) for 707 U.S. dollars/TEU, down 2.1% compared to the previous period; Mediterranean routes, whose market situation is similar to the European routes; spot market booking prices fell slightly; and the last recorded 1,147 U.S. dollars/TEU, a drop of 3.1% compared to the previous period!

 

So it is now confirmed that the shipping lines' November 1 push up of FAK rates (all kinds of freight rates) on routes from Asia to Europe has lost momentum and is now only a fraction of what was required.

 

This explains why shipping lines had to do a final recalibration before the end of the year by introducing new, but identical, December 1 GRIs to push up spot prices on the route.

 

Drewry's latest freight rates on the Asia-North Europe route fell 4% to an average of $1,227 per 40 feet, down 54% from a year ago, and several other major routes also recorded year-on-year declines in freight rates.

 

 

 

 

This downward trend was noted last week in a commentary by the Ningbo Containerized Freight Index (NCFI), which said that prices in Northern Europe and the Mediterranean had "fallen sharply after a brief period of increase".

 

In addition, The Loadstar's regular shipper contacts report that Asia-Nordic carriers have simply reverted to discounted rates after a period in which prices were pushed up mainly by NVOCC co-loading.

 

One UK shipper told The Loadstar that a top three global carrier has extended a significant discount from Dalian to the port of Felixstowe to the latest departure date of January 4, without implementing the already announced GRI for December.

Singapore-based AGX said it was "doubtful" that the Dec. 1 GRIs would stick, in its view.

 

Indeed, AGX, a collaborative platform for freight forwarders and importers, said the first annual tariffs ranged from $1,050 to $1,300 per 40 feet, which "bodes poorly for the realization of the new tariff levels".

 

Asia-Mediterranean spot rates have also come under pressure recently, falling another 1% last week to $1,449 per 40 feet, down 57% from a year ago.

 

In response, MSC announced a new FAK rate of $2,000 per 40 feet for Western Mediterranean ports, effective December 1st.

 

Meanwhile, in the trans-Pacific region, Xeneta's XSI Asia to U.S. West Coast spot rate fell 8 percent to an average of $1,906 per 40 ft. after weeks of gains, with AGX reporting that Maersk is "heavily discounting" on trade routes through its online Maersk Spot platform.

 

Spot prices from Asia to the U.S. East Coast have been spiraling downward, falling 2% last week to $2,621 per 40 feet, down 48% from a year ago.

 

In addition, last week shipping line Zim, which posted a shocking third-quarter net loss of $2.27 billion, is resurfacing its Central U.S. West Coast routes, which were suspended in March, to take advantage of stronger U.S. West Coast prices brought on by the shift of freight to the coast.

 

However, the introduction of additional U.S. West Coast capacity could put downward pressure on pricing on the route.