By Mike Wackett (The Loadstar)–Container area prices from Asia to North Europe sagged listed below $700 per teu today, shedding an additional 3.9% in worth.

They currently stand at $686 per teu, while for Mediterranean ports, prices moved 5.8% to $652 per teu.

In January products prices per teu for both remained in unwanted of $1,000.

The return of the Shanghai Containerized Freight Index (SCFI) today, after the Chinese Golden Week vacation, verifies area prices for the profession are remaining to glide and also are currently trending listed below long-lasting prices.

Given that the temporary market has actually been verified to have a considerable influence on yearly agreement prices, service providers will certainly be making use of all and also any type of ammo in the coming weeks to prop-up the area market, consisting of extreme solution cuts using blanked cruisings.

In its Ocean Freight Shipping Prices Review discussion the other day, Michael Braun, supervisor worth design at products price benchmarking expert Xeneta, kept in mind a “significant change in the last couple of weeks”, which “for the first time in 18 months we are seeing the long-term and short-term markets on the same level”.

Mr Braun claimed there were signs from Xeneta’s crowd-sourced information that identify price disintegration was currently starting to drag down products prices on lately wrapped up longer-term agreement offers.

And, in a different blog site by Xeneta president Patrik Berglund, there was a “beware” advising to the market that the marketplace can be “turning for the worse”.

However, Mr Berglund included the caution that the marketplace was “still healthy for liners”, offered the price repair progression made in the very first 3 quarters of this year.

However, service providers have yet to introduce their winter season blanking programs– recommending either that a price battle is impending or that there will certainly be a radical culling of trips, as lines seem taking actions to press prices back up in advance of agreement arrangements with carriers.

Indeed, The Loadstar has actually seen a number of FAK (products all kinds) client advisories in the previous 2 weeks, consisting of those from CMA CGM and also Hapag-Lloyd

The French provider is seeking brand-new FAK prices from Asia to North Europe of $1,050 per 20ft and also $2,000 per 4 feet, from November 1, legitimate for 15 days. However, Hapag-Lloyd has actually pitched its FAK prices, for the very same day and also period, at a somewhat reduced $950 and also $1,800.

Meanwhile, the SCFI videotaped a huge 9.5% decrease for area prices from Asia to the United States eastern shore, taking the price to $1,801 per 40ft. For the west shore, the damages was not as extreme, dipping 3.3% to $1,367 per 40ft.

The price disintegration on the transpacific has actually been substantial given that the start of the year when area prices went to $2,167 per 40ft for the United States west shore and also $3,647 for eastern shore ports.

Mr Berglund kept in mind that the transpacific profession had actually additionally experienced a “narrowing of the gap” in between brief- and also long-lasting markets in current weeks.

According to Xeneta information, on August 1, the marketplace standard for temporary prices for the United States west shore stood at $1,816 per 40ft, compared to the long-lasting standard of $1,397– a differential of $419 in between both markets.

But by October 11, the space had actually tightened to simply $173.

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