Having announced last week that they would impose a freight increase on the Asia Europe route in August, shipping lines have revealed that spot rates have fallen on average. The Shanghai Containerised Freight Index showed that rates declined from 809 dollars per tonne two weeks ago, to 800 dollars per tonne.
Shipping line hope that they will be able to increases on the trade; utilisation rates are gradually increasing as carriers reduce capacity on the Far East route. Utilisation rates are running at 85 to 90%.
Freight forwarders are reluctant to believe that the carriers will be able to implement the suggested rises, as carriers are running below 100%. There is a mixed picture on container availability; some carriers say there is a shortage, while some have been selling containers.
If shipping lines do manage to carry through the increase, the peak season is likely to be shorter than usual.