Asia-Europe Carriers Push Ahead With Hefty December GRIs

Asia-Europe carriers are planning a new round of hefty general rate increases (GRIs) in December, despite a downward trend that sees these increases losing steam after a week or so. According to analysts, spot rates from Shanghai to North Europe fell $265 per 20-foot container (TEU) from last week, a 31 percent drop and one of the largest weekly falls this year by percentage. The rate is now $409 per TEU ($818 per FEU), 49 percent less than during the same week last year. Undeterred, CMA CGM and Cosco will levy a $950-$1,000 per TEU GRI on Asia-North Europe and the Mediterranean routes from December 1st, with “K” Line implementing a $2,000 per forty-foot container (FEU) at the same time. Hapag Lloyd announced a more restrained GRI on Asia-Europe and Med of $650 per TEU. The Asia-Europe trade, like the Trans-Pacific, has been affected by the large number of containerized ships that are due to be deployed in the coming years. This has been compounded by weak demand from both major markets and the emerging economies. Stay tuned for future updates on rates and GRIs.