Shanghai index confirms rate increase in Far East
According to the Shanghai Containerised Freight Index (SCFI) the spot rates for Chinese export cargo to Europe are increased with approximately 70% last week.
All major carriers had announced large rate increases for March 1, which amounts averaged $750. Based on the SCFI can be said that three-quarters of the loot is hauled by carriers.
According to the index of the Shanghai Shipping Exchange the carriage of a 40' container between Shanghai and northern Europe last week, cost $2,824 all-in. The previous week this was only $1,652. According to the French consultant Alphaliner the carriers have at least 1,800 to 2,000 dollars to be breakeven. This calculation is based on a bunker cost of $700 per ton.
On Friday, Drewry announced that the rate increase was successful for more than 100%. According to the World Container Index Drewry and Cleargate the cost for transport from a 40 'from China to Rotterdam was last week $2,732 (+114%) all-inclusive. The index of Drewry is based on new contracts, while the SCFI is calculated through a weekly survey of carriers and forwarders.
The SCFI shows that the rates between China and the Middle East could be significantly increased (+75%). On the trans-Pacific prices remained under pressure last week. On this route the carriers will try mid-March to charge $300 per 40 'container extra.