Spot Container Freight Rates Fall 8%

Both major indices posted sharp declines, with the SCFI losing 236.8 points to 2726.58 points on September 6, down 8% from a week earlier. Meanwhile, the Drewry WCI also fell 8% to $4,775/FEU on September 5.

Drewry’s detailed analysis shows that the decline in freight rates was led by trade routes between Asia and Europe/Mediterranean. These are the routes most directly affected by the diversion from the Red Sea and Suez Canal to bypass the Cape of Good Hope, and more recently by port congestion at major ports.

Shanghai to Rotterdam fell 14%, or $985, to $6,219 per 40-foot container, while Shanghai to Genoa fell 12%, or $769, to $5,842 per 40-foot container.

The surge in demand that was representative of the early peak season appears to have eased, with the Singapore hub reporting that vessel waiting times had fallen to less than a day in July.

The analysts said that the decline rates on the shipping lanes are expected to continue: “Drewry expects Asia-Europe rates to decline in the upcoming weeks.”

On the trans-Pacific, Shanghai to Los Angeles fell 3%, or $218, to $6,030 per 40-foot container. “Despite the looming threat of an ILA port strike, transpacific Eastbound freight rates have seen a slight dip this week,” Drewry noted.

However, the West Coast transatlantic trade has seen rates rise sharply ahead of a potential strike at the US East Coast port. The Rotterdam to New York route increased by 16% or $304 to $2,212/FEU. The current WCI is 54% below its pre-pandemic peak of $10,377 in September 2021, but 236% above the 2019 (pre-pandemic) average of $1,420.

Source: Phaata.com (via Seatrade-Maritime)

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