MSC has announced a new FAK (freight all kinds) rate from Asia to North Europe for 15 December of $2,050 per 40ft, which is at least double the level on offer in the current spot market, reports The Loadstar.
Container spot rates
Container spot rates between Asia and North Europe have lost a third of their value already this month, with, for example, Drewry’s WCI North Europe component declining another 6% in the past seven days, for an average of $1,148 per 40ft.
Moreover, carriers’ pricing via their online platforms has fallen to some $800 per 40ft for shipments from ex-Chinese ports to Rotterdam, Hamburg, and Felixstowe, valid until the first week of January.
Some of MSC’s peers, including Hapag-Lloyd and CMA CGM, have proposed new Asia-North Europe 40ft FAK rates of around $1,800 from 1 December, which were effectively re-sets of their failed 1 November general rate increases (GRIs).
Meanwhile, on the Asia-Mediterranean trade lane, MSC is also attempting a significant rate restoration with a new FAK rate of $2,450 per 40ft for west Mediterranean ports, effective 15 December.
Spot rates on the route, which have hitherto been more resilient than North European freight rates, have come under pressure in the past few weeks, with, for instance, the Freightos Baltic Index (FBX) component down 5% this week, to an average of $1,487 per 40ft.
To support their December GRIs, which carriers are desperate to see stick, ahead of new contract negotiations, the lines appear to be rolling cargo for bookings they regard as sub-economic, despite having agreed on the low rates.
A UK-based NVOCC suggested to The Loadstar this week he thought the carriers were “having a reality check”, adding: “We didn’t ask for the cheaper rate, they gave it to us, and now they are having second thoughts and messing about with our bookings.”
And another shipper contact told The Loadstar that rate volatility was causing more administration work for his organization.
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Source: The Loadstar
