SPOT rates for shipping containers from Asia to northern Europe fell 24.9 per cent to US$833 per TEU as of Friday, reports Reuters. 

The Shanghai Containerised Freight Index (SCFI) rates fell 21.4 per cent for shipments from Asia to ports in the Mediterranean to $880 per TEU. 

Rates to the US west coast were down four per cent to $1,542 per FEU and slipped 2.1 per cent, hitting $2,985 per FEU to the US east coast.

The drop came after the previous week's increase of 177 per cent, the result of most big carriers implementing a general rate increases from August 1.

Break even rates for the Asia-Europe trade are reckoned to be between $800- $1,000 per TEU.

Since January, eight attempts to raise rates have failed to stick, even as spot freight rates fell to an all-time low of less than $200 per TEU in June, due to weak cargo volumes and carriers' reluctance to cut capacity on a concerted basis, according to Alphaliner.

Derivative broker Richard Ward, of Forward Freight Agreements (FFA), said carriers have been unwilling, or unable, to take the measures necessary in the physical market that would have given them a chance of maintaining last week's increase.