The downward trend in spot freight rates for container shipping between China and Europe continues into the second week of September 2024, according to the World Container Index data released by Drewry on September 12, 2024. The most notable figure is the Shanghai-Rotterdam route, where rates plummeted 17% in a week, dropping by more than a thousand dollars to below $6,000 per FEU (now at $5,152). The decline on the Shanghai-Genoa route was less steep but still significant, at 10%, with rates reaching $5,256 per FEU. Despite the weekly drops, year-on-year trends remain strongly positive, with rates up 297% for Rotterdam and 210% for Genoa. Meanwhile, rates on the Rotterdam-Shanghai route remained stable week-on-week, from $612 to $606, reflecting a 25% annual increase.
The transatlantic freight rates also fell in both directions: down 9% between Rotterdam and New York (now at $5,011) and down 4% from New York to Rotterdam (now at $704). In the U.S. market, the cost to ship an FEU from Shanghai to Los Angeles fell 7% week-on-week to $5,627, while rates in the opposite direction rose by 1% to $718. The Shanghai-New York route saw the most dramatic drop, with rates plunging 21% in a week, from $8,451 to $6,661. However, year-on-year comparisons remain positive at +120%.
This scenario has caused the composite index, which covers all routes, to drop by 13% week-on-week, landing at $4,168 per FEU. Despite this, the average rate remains 167% higher than during the same period in 2023. Drewry anticipates that due to weak demand for transport services, freight rates may continue to decline in the coming weeks.
