The downward trend in average spot rates for container shipping between China and Europe continues at a steady pace through late September and early October 2024, although there is a slight slowdown compared to previous weeks. According to the World Container Index published by Drewry on October 3, the weekly reduction is in single digits: -9% on the Shanghai-Genoa route and -8% on the Shanghai-Rotterdam route. In both cases, rates have fallen below $4,000 per FEU, with the Shanghai-Genoa route averaging $3,848 and the Shanghai-Rotterdam route averaging $3,815. On a year-over-year comparison, the rates still show significant increases: +162% for Genoa and +271% for Rotterdam. Meanwhile, rates from Rotterdam to Shanghai also dropped slightly (-2%), now sitting at $590.
In contrast, the transatlantic route remains stable: the rate from Rotterdam to New York decreased slightly from $2,067 to $2,061 per FEU within a week, while the reverse direction saw a marginal increase from $722 to $724. However, the impact of the U.S. port strike, which began on October 1 and includes the New York terminal, remains to be seen.
The dockworkers' strike is also expected to affect trans-Pacific rates, which already show a decline in the latest report for routes from Asia to the U.S.: -4% from Shanghai to Los Angeles (now at $5,258 per FEU) and -2% from Shanghai to New York (at $5,922 per FEU). The rate from Los Angeles to Shanghai remains stable and is the only route showing a year-over-year decrease (-13%).
Drewry analysts predict an increase in shipping rates from China to Europe and the U.S. at the start of October due to the dockworkers' strike. By October 3, several container shipping companies had already announced the introduction of a surcharge in response.
