Carriers seek rate hikes in Asia-Europe, as consumer demand picks up
SHIPPING lines are seeking a general freight rate hike to stick in July on the Asia-Europe trade after prices on services to northern Europe picked up steam.
Prices from Shanghai to the Mediterranean slid $90 week on week to $1,671 per TEU, with reports suggesting this could reflect a decline in utilisation over the Ramadan holidays, reported Lloyd's List.
Freight Investor Services (FIS) broker Richard Ward said: "Carriers will hope that July offers more support than what has been witnessed from the June attempt with the SCFI showing an increase over the past few weeks of just $47 per TEU."
In mid-June 2013 prices to northern Europe stood at $533 per TEU and to the Mediterranean, the SCFI reached $1,202 per TEU. For services to the Mediterranean, the average weekly price stands at $1,550 per TEU, compared with $1,173 last year.
On the transpacific trade, Drewry's Hong Kong-Los Angeles Container Rate Benchmark stands at $1,750 per FEU, the same price as a week ago.
Analysts said they expect "prices to increase over the coming weeks on the back of a peak-season surcharge of $400 per FEU as requested by the rate-recommending group, the Transpacific Stabilisation Agreement.
Asian Shipper News