At the beginning of September 2024, the slow decline in spot rates for container shipping experienced a sudden shock along the China-Europe route, with rates plunging by double digits compared to the previous week's modest 2-3% decrease. Drewry’s World Container Index, published on September 5, 2024, reveals that the average freight rate between Shanghai and Genoa dropped by 12% within just a week, falling below $6,000 per FEU (precisely $5,842). Similarly, the rate between Shanghai and Rotterdam decreased by 14%, dipping below $7,000 (at $6,219).
These, however, are exceptions. On other routes, the rate declines have been contained, and in some cases, there has even been an increase. Outbound shipments from Rotterdam to Shanghai recorded a 2% decrease in rates compared to the previous week, standing at $612 per FEU. On the Rotterdam to New York route, freight rates surged by 16%, reaching $2,212 per FEU.
In the Pacific, rates between Shanghai and Los Angeles fell by 3% to $6,030, and those between Shanghai and New York slipped by 2% to $8,451. Conversely, in the opposite direction, from Los Angeles to Shanghai, there was a slight 1% increase, bringing rates to $714 per FEU. The sharp declines on the China-Europe routes dragged Drewry's overall World Container Index down by 8%, bringing it below $5,000 per FEU, standing at $4,775. According to Drewry, container rates between China and Europe could continue to fall in the coming weeks.
