The final week of January 2024 cooled the previously heated spot freight rates in container shipping, marking a downturn with a red arrow after two months of significant increases, as shown by figures released by Drewry on February 1, 2024. The composite index, covering all routes, fell by 4%, settling at $3,824 per FEU. However, the trend is not uniform, as routes touching the United States continue to show rising values. European routes, in contrast, have all declined.
The freight rate between Shanghai and Genoa saw the largest drop, by 8%, falling below the $6,000 threshold to $5,848 per FEU. The rate between Shanghai and Rotterdam decreased by 6%, coming to $4,661, and the rate for the reverse direction fell by the same percentage, dipping below $1,000 to $964. On the other hand, transatlantic routes are seeing an uptick: the rate from Rotterdam to New York rose by 1% to $1,589, and the return route increased by 3% to $635.
The situation across the transpacific routes involving the United States is mixed, with three different trends observed: the rate between Shanghai and New York remained stable at $635 per FEU (with only a $20 increase from the previous week), the rate from Los Angeles to Shanghai dropped by 4% to $734, while the rate from Shanghai to Los Angeles increased by 2% to $4,421. Drewry anticipates that freight rates will stabilize as the Chinese Lunar New Year approaches, during which the country's production system slows down for the holidays.
