SPOT Asia-Europe rates fell to their lowest since June, according to the Shanghai Containerised Freight Index (SCFI), which shows a third straight week of decline - down 7.7 per cent to US$1,106 per TEU. 

Services between Shanghai and the Mediterranean followed suit falling 6.4 per cent to $1,427.

Freight Investor Services broker Richard Ward said rates will fall in weeks to come with only weak September general rate increases expected.

“Reports that Zim was offering spot cargo rates of $1,000, as expected seem to have been the catalyst for the undercutting," Mr Ward informed Lloyd's List. 

"Disruption at Ningbo has forced some carriers to offer discounted rates in an attempt to fill the void created by the strikes,?he said.

This week’s SCFI shows that rates for the US west coast were off 3.1 per cent to $2,044 per FEU, while east coast deliveries slipped 0.4 per cent to $4,161 per FEU.

The comprehensive index fell by 44.35 points, or four per cent to 1,076.47 point as rates dropped in all major trade lanes last week.

But Drewry’s Hong Kong-Los Angeles rate was unchanged at $2,075 per FEU though it was down 7.2 per cent year on year. Drewry expected rates to decline as shippers divert to the east coast to avoid west coast congestion.