Attempts to restore freight rates in the Asia-Europe trades appear to be failing, after more than doubling when shipping lines implemented hefty general rates hikes at the beginning of November, according to the Shipping Gazette.
The World Container Index's Shanghai-Rotterdam freight rate assessment rose by US$1,403 to $2,498 per FEU from November 1-7, more than doubling spot prices that had been falling for several months.
Over the same period, the Shanghai Containerised Freight Index showed a decline of $103 per TEU, or 7.2 per cent, in the China-north Europe trades. One week earlier, spot rates had surged from $670 to $1,423, reported Lloyd's List.
The increase reported by both indices around the beginning of November came in the wake of proposed rate hikes by carriers ranging from $750 to $1,000 per TEU.
"The recovery in pricing comes at a critical time for ocean carriers, midway through fourth-quarter negotiations for 2014 contract rates," said World Container Index director Richard Heath.
The recent jump in freight rates comes after World Container Index's Shanghai-Rotterdam freight rate assessment fell by 55 per cent from its peak in early August.
Drewry research manager Martin Dixon said that the sustainability of current freight rate levels hinges on measures shipping lines implement from now on to limit capacity.
"With many more ultra large container vessels due to enter service, Drewry warns that a reliance on skipped sailings alone will not prevent rate erosion."
The World Container Index's Shanghai-Rotterdam freight rate assessment rose by US$1,403 to $2,498 per FEU from November 1-7, more than doubling spot prices that had been falling for several months.
Over the same period, the Shanghai Containerised Freight Index showed a decline of $103 per TEU, or 7.2 per cent, in the China-north Europe trades. One week earlier, spot rates had surged from $670 to $1,423, reported Lloyd's List.
The increase reported by both indices around the beginning of November came in the wake of proposed rate hikes by carriers ranging from $750 to $1,000 per TEU.
"The recovery in pricing comes at a critical time for ocean carriers, midway through fourth-quarter negotiations for 2014 contract rates," said World Container Index director Richard Heath.
The recent jump in freight rates comes after World Container Index's Shanghai-Rotterdam freight rate assessment fell by 55 per cent from its peak in early August.
Drewry research manager Martin Dixon said that the sustainability of current freight rate levels hinges on measures shipping lines implement from now on to limit capacity.
"With many more ultra large container vessels due to enter service, Drewry warns that a reliance on skipped sailings alone will not prevent rate erosion."