More pain for Asia-Europe shippers as rate hikes and surcharges pile up

ontainer spot rates on Asia to North Europe leapt 27% this week to breach $2,000 per teu, with carriers planning further FAK rate hikes for December.

The Shanghai Containerized Freight Index (SCFI) recorded an increase of $447 in its North Europe component, to $2,091 per teu, which is 170% higher than a year ago.

The SCFI rate to Mediterranean ports also saw a big spike, 23%, to $2,219 per teu, representing a 203% increase on 12 months ago.

And there is no sign of an end to the pain for Asia-Europe shippers as further FAK increases next month come on top of the myriad surcharges and premium product fees now required to secure equipment and space on vessels.

On the backhaul route, the situation for European exporters is arguably worse. Some are learning that they cannot secure bookings to Asia until January at any price.

For several weeks, ocean carriers have been prioritising the evacuation of empty containers to Asia over the release of equipment to shippers for exports, which can delay the return of a box to the lucrative headhaul market by a month.

Due to acute port congestion, UK exporters have seen their containers stranded on the quay in recent weeks as carriers have ‘cut and run’ their ship operations, in some cases loading empty equipment in preference.

Indeed, it was reported this week from one shipper who said his six 40ft containers had been rolled from four consecutive Felixstowe sailings.

“I really don’t know how to explain this to our customer. It really is a complete mess,” he said.

This week CMA CGM notified customers it was suspending all bookings from the UK to Asia and the Indian sub-continent until January. The Loadstar understands that the decision, which has also been confirmed by Ocean Alliance partners, relates to the planned skipping of a number of Felixstowe calls next month.

More pain for Asia-Europe shippers as rate hikes and surcharges pile up

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