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A-E rate down 6.6pc to US$1,055/TEU - USWC off 4.7pc to $2,195/FEU

CONTAINER spot rates fell again on major trade lanes last week, according to the Shanghai Containerised Freight Index data despite carriers' attempts at rate restoration.

Last week抯 Shanghai index showed Asia-Europe spot rates fell 6.6 per cent to US$1,055 per TEU and by 8.7 per cent on the Far East-Mediterranean route.

Asia-US west coast rates fell 4.7 per cent to $2,195 per FEU last week while Asia-US east coast prices dropped 2.4 per cent to $4,524 per FEU.

Rates from Asia to the Mideast Gulf and Red Sea, fell 11 per cent to $754 per TEU, their lowest since March.

But Drewry's Hong Kong-Los Angeles benchmark price was up 14.5 per cent to $2,375 per FEU after the Transpacific Stabilisation Agreement exacted a general rate increase.

But Drewry said its benchmark rate level indicates that only half of the TSA increase was accepted by the market, signalling a decline in coming weeks.

Freight Investor Services broker Ricky Forman agreed. 揥ith utilisations reported to be dropping to 85-90 per cent, spot rates are expected to decline further into October,?he said.

The Forward Freight Agreement curve suggests that rates in September priced at $1,100 per TEU will be followed by rates of $1,050 in October, said Lloyd's List.

Mr Forman expected carriers to announce November rate hikes, and said he hoped they would not collapse as they did last year when they dropped to $675 per TEU from Shanghai to northern Europe.

With fourth quarter contract rates being discussed, reportedly as low as $1,500 per FEU, carrier prospects are dark. 揘ot even Maersk can break even on those contract rates,?said Mr Forman.