Forwarders find Asia-Europe rate decline slowing

FORWARDERS are finding the pace of rate declines in the Asia-Europe trade lanes slowing since mid-December, reported London's International Freighting Weekly.

According to the Shanghai Shipping Exchange (SSE), rate for Shanghai-Northern Europe line decreased only US$4 from $1,337 per TEU as of December 10 to $1,333 as of December 17. And the rate went up $9 per TEU to $1,342 the following week ending December 24.

This seems to be a signal for the end of the rate drop in Asia-Europe trade lanes, said IFW. The Shanghai-Northern Europe rate shrank $95 per TEU in the first week of December and $42 per TEU in the second week.

Coincidentally, the slowdown in the rate drop meets the timing that carriers are prepared to increase Asia-Europe rates in January.

Forwarder sources told IFW that while carriers are ready for the rate increases, the actual range of increases is negotiable, which could be settled at around $100-150 per TEU instead of the planned $200-300.

Also, it is said that some forwarders are proposing new rates that exclude the increments, citing the IFW report.
(Source:www.schednet.com)