Asia – Europe Freight Rates Continue To Rise as Levels of Over USD5000 per 40′ being Quoted

Posted on: 30 Oct 2020

How Much Means Asking Price And Charge

Shippers from Asia to the UK container hub port of Felixstowe are being quoted rates of over $5,000 per 40ft, which is five times higher than the current spot rate for North Europe.

A forwarding source told The Loadstar today that some carriers were refusing to accept bookings to Felixstowe “at any rate”, due to the worsening quay and landside congestion at the UK’s biggest container port.

Another source told The Loadstar they had obtained a quote from Shanghai to Felixstowe, via the Maersk Spot digital platform, for a departure on 7 November at $5,410 quay to quay.

“They simply don’t want the freight, so the idea is to stop people booking,” said the contact.

he source said CMA CGM’s quote for Felixstowe, including a $300 container fee, was $2,850, plus $750 to guarantee shipment, while Evergreen was apparently not accepting bookings for the UK port.

Carriers are now quoting FAK rates to Rotterdam, Antwerp and Hamburg at up to $500 cheaper than for the UK, as the congestion at Felixstowe has spread to Southampton and London Gateway due to vessel and cargo diversions.

Nonetheless, rates for all the North Europe hubs are soaring as carriers load on additional “product fees”.

Today’s Shanghai Containerized Freight Index (SCFI) North Europe component recorded an increase of $40 per teu to $1,140, which is around 60% higher than the spot rate for the same week of last year.

However, as one forwarder told The Loadstar, this week “you can at least double carriers’ FAK rates once you add on their container and space guarantee charges, the situation is going to continue to get worse before it gets any better”.

 

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