Asia-Europe rates gain from Christmas rush

SINGAPORE : Gains in Asia-Europe freight rates are likely to be sustained throughout December as shippers rush out goods before Christmas, according to Linerlytica’s latest report, released recently.

On 8 December, the Shanghai Containerised Freight Index showed that Asia-North Europe rates gained 9% to US$925/TEU, while Asia-Mediterranean rates went up by 10% to US$1,387/TEU, marking a second straight week of growth.

Meanwhile, Asia-Europe backhaul sailings and diversions from the Panama Canal are mitigating the impact of record newbuilding deliveries of 2.2 million TEUs this year.

Asia-US East Coast dipped slightly, by US$5, to US$2,441/FEU, while Asia-US West Coast only increased by US$23, to US$1,669/FEU, even though the quota on crossings through the Panama Canal has pushed some Asia-US East Coast sailings to reroute through the Suez or round the Cape of Good Hope.

Linerlytica said, “THE Alliance carriers are paying a heavy price after failing to secure priority passage and have been forced to divert all three of their Panama all-water services to avoid lengthy delays at the Canal. East Coast capacity remains sufficient to meet market demand despite draft restrictions that have limited full container intake for the Panama passage.”