Spot Rates Sink Post-CNY: Is a Price War Brewing in Asia-Europe Trades?

By Gavin van Marle (The Loadstar)

Despite large parts of the Chinese workforce continuing to enjoy the new year holiday, there was a partial return to work for other parts of the economy, including the country’s freight forwarders.

They were welcomed with another week of falling spot rates across most of the major trades.

This week’s Shanghai Containerised Freight Index (SCFI), which collates quotes for the forthcoming week, saw declines across all its trade routes, bar a 10% week-on-week increase on China-Mexico.

The SCFI’s China-North Europe and China-Mediterranean dropped 16% and 5% on the previous week, respectively, while the rates to the US west and east coasts both fell 5% week on week.

Drewry’s World Container Index (WCI) Shanghai-Rotterdam leg dropped 5%, to finish the week on $3,125 per 40ft, a rate that is now some 29% down year on year, while its Shanghai-Genoa leg wa…