In a game of chicken liners’ inability to retreat is going to hurt them.
Limited capacity withdrawals over the winter slack season has started to have an impact on spot freight rates, Alphaliner reports with the Shanghai Containerized Freight Index (SCFI) rate assessment to North Europe falling by 6.5% on November 10 to $728 per teu from $779 per teu a week earlier.
“Further falls are expected over the next few weeks, with carriers reported to have abandoned rate increase attempts in November,” Alphaliner reported in its most recent weekly report.
Spot freight rates on the transpacific routes are also falling due to a similar lack of capacity withdrawals for the winter slack season, with SCFI rates to the US West Coast falling by 8.9% to $1,411per feu and rates to the US East Coast falling by 8.2% to $1,917per feu on 10 November.
