Container spot rates from China to Europe and the US tanked again this week, leading to heavy discounting by carriers and prompting some to offer significant mid-term reductions to contract rates, reports The Loadstar.
The decline in freight rates was difficult to stop
Ahead of the Chinese Golden Week holiday, the Ningbo Containerized Freight Index (NCFI) weekly market commentary reported that vessel export load utilisation levels were “poor”, and that “the decline in freight rates was difficult to stop”.
Drewry’s World container Index (WCI) Asia-North Europe component lost another 10%, to $5,441 per 40ft, while its reading for Mediterranean ports saw a huge 19% decline, to $5,216 per 40ft.
Moreover, one UK-based NVOCC told The Loadstar this week he had received an offer of $4,500 for a 40ft from Shanghai to Southampton from an alliance carrier.