ANNOUNCED price increases for September 1 have failed to stick with rates rising only US$18 to $2,498/FEU from Shanghai to Rotterdam, far short of the $445 to $500/TEU range first demanded.
ANNOUNCED price increases for September 1 have failed to stick with rates rising only US$18 to $2,498/FEU from Shanghai to Rotterdam, far short of the $445 to $500/TEU range first demanded.
Transpacific spot rates to the US east and west coasts from Shanghai Containerised Freight Index inched up for a second the week ending September 6, attributed to the September 1 Transpacific Stabilisation Agreement's (TSA) announced $400 per FEU hike to the west coast and $600 to the east coast.
Drewry's World Container Index (WCI) indicates the market has refused to accept increases following a summer of huge rate swings on Asia-Europe route. However, carriers are likely to re-introduce increases within a couple of weeks.
"It is unlikely these increases will be large enough to offset any declines seen in the next few weeks," said Richard Ward, research analyst for container derivatives at London shipbroker ICAP Shipping.
The spot rate from Shanghai to the US west coast rose 1.2 per cent, or $24 to $2,013 per FEU, according to SCFI data issued by the Shanghai Shipping Exchange.
Combined with last week's increase, rates to the west coast are up $100, far short of the $400 announced increase.
According to the Shanghai Containerised Freight Index, spot rates from Asia to Europe posted their steepest weekly decline since mid-April in the week ending September 6.
Noting that Asia-Europe rates have declined for five weeks, Mr Ward said this sixth drop shows that carriers - NYK, MSC, UASC, OOCL, Maersk, CMA CGM and Hapag-Lloyd - failed to make their increases stick. Announced September 1 rate increases ranged from $300 -$650 per TEU.
"If carriers can make the necessary capacity adjustments in unison, then there is always a possibility that they can reverse the declines. Therefore how rates now develop for the remainder of the year really does depend on the action of carriers," said Mr Ward.
Said Drewry research manager Martin Dixon: "National holidays in China starting at the end of September may create a small demand spike. However, if this does not materialise there may be few other opportunities for carriers to increase rates in 2013."
