Sunday, February 23 2020



RATES & TARIFFS:  Asia-Europe down 5.5pc to US$586/TEU-transpac off 9pc to $1,639/FEU. Spot rates from the Shanghai Containerised Freight Index (SCFI) on the Asia-north Europe route fell 5.5 per cent to US$586 per TEU last Friday, their lowest since June 2013 after eight straight weeks of declines, Reuters reports. Rates dropped nine per cent on the Asia-Mediterranean route, and fell 2.7 per cent to ports on the US west coast, and were off 3.2 per cent to ports on the US east coast.  Carriers are trying to increase rates against a backdrop of declining operating costs due to the deployment of larger vessels, slow steaming and in bunker costs that has reduced the breakeven rate of $1,000 to $750 to $800 per TEU. Transpacific rates fell nine per cent from last week to a 12-month low as congestion persisted st US west coast ports, according to the container freight rate benchmark from Drewry Maritime Research. Drewry's Hong Kong-Los Angeles benchmark rate was $1,639 per FEU, down 13.1 per cent year on year recording a $2,253 per FEU rate last month, and a high of $2,407 last December. Most transpacific cargo moves under longer term contracts and spot rates are viewed as reflection of short-term sentiment, but they influence annual contract talks now underway.