FREIGHT RATES CONTINUE TO FALL DESPITE RISING DEMAND
The Loadstar reported today that after a small hike last week, container spot freight rates on the Asia-Europe trades resumed their downward trajectory this week, with prices to both North Europe and Mediterranean ports falling.
Shipping analyst Drewry’s World Container Index (WCI) showed rates on the Shanghai-Rotterdam route down by 5% week on week, to $2,512 per 40ft container. Spot rates on the leg are now some 28% below the same point last year, and lower than the post-Chinese New Year and Golden Week pricing slumps last year. Meanwhile, the WCI’s Shanghai-Genoa leg declined 11% week on week, to end at $3,333 per 40ft.
Reports indicate that these spot rate declines on both trades have occurred despite demand remains relatively strong: According to recently released figures from Container Trade Statistics (CTS), January saw 1.5m TEU shipped from the Far East to Europe, an 18.2% increase in volumes over January 2024. Sea-Intelligence chief executive Alan Murphy suggested that rising capacity on the trade is outpacing demand growth, leading to falling vessel utilisation levels. While carriers will try to stop the rate decline early April, projections indicate further decline in the coming weeks: The latest Shanghai Containerised Freight Index (SCFI), which aggregates spot freight quotes for the forthcoming week, showed a 15% week-on-week decline in China-North Europe rates, and an 8% decline in China-Mediterranean pricing.
Source: The Loadstar