Shipping
ROLLER COASTER RATES RIDE FOR ASIA/EUROPE
September 23, 2015

Rates on the Asia/North Europe trade fell 23% during Week 37 following some steady increases during August, a roller coaster routine which has become commonplace in the sector throughout the year.

 

Self Photos / Files - shipping-containers-1489883But the alarming factor in the most recent rate trend has been that the ups and downs of the rates sector have become more and more significant on the Asia/Europe trades than any other mainline trade lane. Along with the peaks and troughs has come the obvious factor that the planned Asia/North Europe and Asia/Mediterranean General Rate Increase for September 1 has simply not worked.

 

Consequently, the market weakness in this trade has ensured that spot rates are presently 44% lower than they were at this time last year.

 

Nearly all the lines involved in the Asia/Europe trade have taken the decision implement a second General Rate Increase in the latter part of September in addition to the planned one for September 1. The table below shows those increases line-by-line.

 

APL: US$500/TEU and US$1,000/FEU effective on September 20

China Shipping: US$525/TEU and US$1,050/FEU effective September 20

CMA-CGM: US$500/TEU and US$1,000/FEU effective September 20 (Asia/Mediterranean)

COSCO: US$500/TEU and US$1,000/FEU effective on September 20

Evergreen: US$500/TEU and US$1,000/FEU effective on September 20

Hamburg-Sud: US$500/TEU and US$1,000/FEU effective September 21

Hanjin: US$500/TEU and US$1,000/FEU effective September 20

Hapag-Lloyd: US$550/TEU and US$1,100/FEU effective September 21

K Line: US$500/TEU and US$1,000/FEU effective September 20

Maersk: US$500/TEU and US$1,000/FEU effective September 20

OOCL: US$550/TEU and US$1,100/FEU effective on September 20

UASC: US$600/TEU and US$1,200/FEU effective September 21 (Asia/North Europe)

Yangming: US$500/TEU and US$1,000/FEU effective September 20

 

Back in August, all the lines involved in the Asia/Europe trades made their own decisions to implement General Rate Increases of around US$1,000/TEU, but in short the increases were simply not accepted by the customers, and they failed either partly, or in full, so it became a case of, “if at first you don’t succeed, then try, try again.”

 

 

By Paul Richardson

Sea Freight Correspondent | London