Weekly GRI roundup
Hapag-Lloyd will increase rates on all cargo and container types on the Far East trade June 9. Rates on cargo from East Asia to all North Europe and Mediterranean destinations will increase $750 per TEU.
Maersk will increase rates on cargo from Far East Asia to East Coast South America on May 15. Rates will increase $750 per TEU; $1,500 per FEU; $500 per 45-foot highcube dry; and $750 for non-operating reefers.
Maersk will increase rates on cargo from Far East Asia to the Middle East and Indian Subcontinent on May 15. Rates will increase $500 per TEU; $1,000 per FEU; and $1,000 per 45-foot highcube dry.
Maersk will increase rates on cargo from the Mediterranean to the Middle East on June 1. Rates will increase $150 per TEU and $200 per FEU, 40-foot container and 45-foot highcube container.
On Friday, May 9, the Shanghai Container Freight Index was set at 1163.06, down 19.19 points from April 30. The SCFI components for cargo moving to the U.S. were $1,907 per FEU, down $6 to the West Coast; and $3,316 per FEU, down $12, to the East Coast.
SCFI Analysis (Richard Ward of Freight Investor (UK) provides occasional analysis and insight into the Shanghai Container Freight Index.)
This week saw an additional jump in rates of $96 to $1,401 on the key Asia-NWE route. In total, $317 of the planned $550 increase has come into force, reflecting a partially successful GRI. This also echoes the higher end of quotes that are reportedly being offered in the market, although expectations are that levels will decline in the coming weeks after reports of undercutting from competing lines. This is even being reported within the proposed P3, with member lines offering substantial discounts. This could be an indication of things to come, particularly once services between these lines become harmonized and the only remaining differing factor becomes price.
Reports also emerged this week that suggest some of the top carriers could be planning blanked sailings for the coming months, which coincides with what appears to be yet another GRI announcement from Hapag-Lloyd of $750 per TEU from June 9. If such blanked sailings can provide the platform for a further rate increase, then shippers could be in for a bumpy ride over the next two months.
Elsewhere, rates from Asia to the East Coast of South America continue to face significant pressures falling $59 to $677 per TEU. Just this week, Maersk announced an additional GRI of $750 per TEU effective May 15 to help combat the aggressive declines seen over the past few weeks. If no increase can be pushed through, then on its current trend rates will soon reach yet another all-time low on the trade lane.
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