Global container rates saw a three per cent-odd week-on-week decline to $5,181 per 40 ft unit, for August 29. Container rates in the previous week was around the $5,319 per container.
Rates were however, significantly higher that a year-ago-period, up 200 per cent-odd. Year ago rates were at $1,740 per forty-foot equivalent unit (FEU).
On a month-on-month basis, container rates dropped by $555 per 40 ft unit beginning August 1, down 10 per cent-odd. August beginning rates were $5,737 per FEU.
The latest Drewry container composite index was 50 per cent below the previous pandemic peak of $10,377 in September 2021, but it is 265 per cent more than the average 2019 (pre-pandemic) rate of $1,420, the firm said in its latest report.
After hitting a July high, carriers have struggled to arrest the rate deterioration that has followed. Sources said, there was some demand waning.
Sources said, container demand may have peaked in August.
Strong demand
Shipping-major Maersk said recently that overall container demand remains strong. “(But), the increase in supply, along with concerns about the weakening manufacturing activity, may pose challenges to maintaining this balance in the coming months,” the company said.
Maersk has forecasted a market volume growth in 2024 to be in the range of 4 – 6 per cent.
According to Linerlytica, freight futures continue to weaken, with North Europe rates trading at a discount of over 70 per cent to current spot rates.
Sources said, Mediterranean Shipping Co. has recalled all August increase notices for Indian bookings to the US East Coast. Bookings to Europe are still on the higher side though.
Specific Routes
Freight rates, week-on-week in August 29, from Shanghai to Rotterdam and Genoa decreased 3 per cent to $7,204 and $6,611 per 40ft container, respectively.
Likewise, rates from Shanghai to Los Angeles decreased 2 per cent to $6,248 per 40ft box; while Shanghai to New York decreased 2 per cent week-on-week to $8,591 and New York to Rotterdam was at $743 per 40ft box for the period under review, as per Drewry.
Similarly, spot rates from Rotterdam to Shanghai and New York decreased by 1 per cent to $622 and $1,908 per 40ft container, respectively.
Meanwhile, rates from Los Angeles to Shanghai remain stable.
“Trans-Pacific eastbound freight rates have seen a slight dip this week. And east-west rates (are expected) to remain stable in the upcoming weeks,” the consultancy firm said.