Container Freight Rates Continue to Soar

The June 20 Drewry World Container Index (WCI) showed the index rose 7% over the past week, to $5,117/feu. The latest updated rates were up 233% compared to the same week last year and 260% higher than the pre-pandemic average of $1,420 in 2019, Drewry said.

Container freight rates have been rising since late 2023 as Houthi attacks in the Red Sea diverted ships around the longer Cape of Good Hope route between Asia and Europe, forcing shipping lines to increase shipping capacity due to longer distance and journey time.

Drewry said it expected freight rates from China to continue to rise next week due to congestion issues at Asian ports. Disruptions have been seen at both ends of the Asia-Europe trade route as journey times get longer for ships diverting. Ships were delayed as European ports struggled to handle the surge in throughput, and those delays spread to other ports such as Singapore.

The Shanghai Container Freight Index (SCFI) had a less steep rise over the past week, rising 2.85% to 3,475.6, continuing its upward trend.

In November 2023, SCFI struggled to surpass 1,000 points before jumping to over 2,000 at the turn of the year. After falling slightly in March and April, the index has risen steadily from around 1750 in late April to its current high.

Looking at individual routes, Drewry said freight rates from Shanghai to Rotterdam were $690/feu higher than last week, up 11% to $6,867/feu. Rates from Shanghai to Los Angeles increased 7% to $6,441/feu; from Shanghai to New York increased by 3% to $7,552/feu and a 2% increase on the Rotterdam to Shanghai and Shanghai to Genoa routes to $672 and $7,029/feu respectively.

New York to Rotterdam and Rotterdam to New York rates both recorded a 1% price decrease to $633 and $2,093 per feu, respectively.

See more:

• International shipping and logistics market update - Week 25/2024
• Analysts predict container freight rates from Asia to Mediterranean could hit US$20,000
• Maersk announces PSS implementation from South East Asia to Australia
• Container Freight Rates for China-Europe Exports Expected to Surpass $10,000

Source: Phaata.com (According to SeatradeMaritime) 

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