SPOT rates on the Shanghai-US west coast trade lane tracked by the Shanghai Containerised Freight Index (SCFI) decreased by 38 per cent last week to US$1,166 per FEU compared to the same period a year earlier.

The all-water prices to the US east coast fell to $2,163, almost half the rate during the same week last year.

A general rate increase on the trans-Pacific gave prices per FEU a $180 boost, but promptly fell $211, more than negating the GRI impact, reported IHS Media.

At the recent TPM Asia Conference in Shenzhen, Ron Widdows, former NOL chief executive and McKinsey consultant, said a wave of capacity cascading from other trades was about to hit the trans-Pacific and that would place significant downwards pressure on contract rates.

Asia-Europe spot rates last week were flat, according to the SCFI, declining one per cent on Shanghai-Rotterdam to $231 per TEU. That is the second-lowest spot rate so far this year, which fell to $205 on June 19.

Spot rates on Shanghai-Mediterranean routes increased last week by $7 per TEU to $202, which is 82 per cent less than during the same week last year.

GRIs are planned for November 1 on Asia-Europe.

"With anecdotal reports suggesting high utilisations for the last week of October, initial expectations are that the planned increases of around $1,000 per TEU will at least be partially successful. 

"Carriers will certainly be hoping for this given that rates currently stand 67 per cent lower than the same period of 2014," analyst Richard Ward said in the Freight Investor Service weekly commentary.