The once sky-high container shipping rates are experiencing a significant drop, particularly on routes between Asia and Europe. This article from gCaptain discusses a recent decline in spot freight rates on these key trade lanes.
The Drewry World Container Index (WCI) reported a near $1,000 per 40ft container decrease on the Shanghai-Rotterdam leg, representing a 14% drop week-on-week. Similar declines were observed on other Asia-Europe routes, with Xeneta’s XSI Asia-Europe price falling to $6,843 per 40ft, a 10% decrease. These figures indicate a substantial shift from the peak rates witnessed earlier in 2024.
Experts attribute this decline to a combination of factors. One reason is the seasonal slowdown in exports from Asia, typically seen around this time of year. Additionally, the rerouting of vessels due to the Red Sea conflict might have contributed to a temporary increase in capacity on Asia-Europe routes. This, coupled with a slight decrease in demand, could be leading to a correction in freight rates. It’s important to note that the current rates are still considerably higher than pre-pandemic levels. The long-term impact of this decline on the container shipping industry remains to be seen.