Shanghai Containerised Freight Index hits low point of the year

THE Shanghai Containerised Freight Index fell 1.4 per cent compared to the start of 2010 to US$1,086 per FEU in the week ending December 17, down from $1,073 per FEU the week of January 1.

This means the index of container shipping out of Shanghai that was launched by the Shanghai Shipping Exchange (SSE) in October 2009 has fallen to its lowest level since the start of this year, owing to continuing pricing weakness in a range of global markets.

The index is now also 30 per cent lower than the level it reached at its peak in mid-summer.

The index shows that freight rates have decreased "across all major lanes with diminishing late-season demand for Asia exports", reports Newark's Journal of Commerce. The Asia-Europe lane was said to be the "most stable" as the rate index shed just 0.3 per cent, or $4, which was attributed to carriers reportedly fighting over market share recently.

The index showed that rates from Shanghai to the US west coast have declined by 1.3 per cent to $1,832 per FEU, marking the 16th consecutive drop in this trade lane. According to the SSE's index freight rates from Shanghai to the US east coast decreased by 1.4 per cent to $3,038 per FEU, the report added.
(Source:www.schednet.com)