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Economics Gazette

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November 17, 2019

Container spot rates continue to decline

Container spot ratesThe container spot rates on key routes from Asia to Europe and the US continue to decline. The value of the Shanghai Containerized Freight Index (SCFI) for the ports of northern Europe declined by 2.1% at the end of last week to 919 USD per TEU, while to the ports of the Mediterranean Sea dropped by 1.4% to 852 USD per TEU.

The index of rates on the ports of the western coast of the United States declined by 3.1% over the past week, to 1226 USD per FEU, while the rates towards the ports of the east coast fell 0.8% in the week to 2233 USD per FEU.

The strongest decline was noted on services in the direction of the ports of the Middle East. So, the rates for transportation of containers from Shanghai to Dubai last week were 717 USD per TEU (-7.1%).

And with PSS (peak season surcharges) now in effect by the majority of carriers, the rate erosion is unexpected, according to the analysts. Nevertheless, it is expected rates to rise in the coming weeks.

More rate hikes and prudent supply during the peak season should lift rates from August.

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