Africa is currently the most profitable destination for goods from China, according to Alphaliner, quoting data from the Shanghai Containerized Freight Index (SCFI), which shows that compared to the beginning of the year, spot freight rates from Shanghai to West Africa (Lagos) have fallen by less than half compared to the overall trend for all shipments from China’s largest port. i.e. – 17.5% against -46.4% overall.
The sharpest drop in freight rates was recorded on services between Shanghai and Santos (Brazil) and between Shanghai and Northern Europe, where tariffs fell by 73.9% and 57.9 % respectively compared to last January.
If shipping distances are taken into account, it is clear that on the routes between Shanghai and the African continent there is a very good chance of making money, with an average of 36.7 US cents per TEU to West Africa and 29.2 US cents per TEU to South Africa.
From this point of view, the least profitable routes are those connecting the Chinese port to the Northern Range ports, where freight rates mean an average profit of 8.7 cents per nautical mile.
According to the market analyst, these figures highlight the wisdom of MSC’s decision to shift its largest containerships 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.” Alphaliner explains.
Translation by Giles Foster
