GRIs drive spot rate surge on East-West trades

11/4/2017

Headhaul rates on both the Asia-Europe and Transpacific trades surged this week on the back of GRIs implemented by box lines looking to capitalise on anticipated strong peak season demand, according to the World Container Index, assessed by Drewry.

Rates on the Shanghai-Rotterdam route rose $462 for a 40ft box to reach $1,716. On the Transpacific trade, rates on the Shanghai-New York trade strengthened by $615 to attain $2,404 per 40ft box. Similarly, rates from Shanghai to Los Angeles went up by $313 to $1,634 per FEU.

“During the first week of November, to cash in on the expected uptick in demand before the Christmas holidays, the carriers implemented GRIs on the East-West routes originating from Asia,” the analyst noted in its latest weekly freight rate assessments report published on 2 November.

The overall composite index of container freight rates on eight major routes to/from the US, Europe and Asia, was up by 25.6% this week to $1,517/40ft container but shows a decrease of 1% on the same period of 2016, the WCI showed.

For the year-to-date, it stands at US $1,502/40ft container, $111 lower than the five-year average of $1,613/40ft container and down 1% on a year ago.