According to the Shanghai Containerized Freight Index (SCFI), spot ocean freight rates ex Shanghai have dropped 46.4% since the beginning of the year. While spot rates were down on all deep sea routes, there are big differences between the trade lanes.
Rates ex Shanghai to West-Africa (Lagos) were down ‘only’ 17.5%, compared to -73.9% for a trip from Shanghai to Santos, or -57.9% for the Shanghai to North Europe route.
When taking into account sailing distances, the earning potential is currently the highest between Shanghai and Africa with an average per nautical mile of 36.7 US cents per teu for West-Africa and 29.2 cents for South Africa.
The lowest income for the carriage of spot cargo is between Shanghai and North Europe. Despite passing West Africa on the westbound leg, freight rates are much lower and result in an income of only 8.7 cents per nautical mile.
Looking at these figures, it made sense for MSC to shift its largest ‘Megamax’ ships from the Far East-Europe trade to Far East-West Africa. It might be surprising that MSC can fill these 24,000 teu vessels in West Africa, but this is partly explained by its use of Lomé as a transshipment hub for cargo between Europe and India.
Source: Alphaliner
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