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In its latest assessment, Drewry Supply Chain Advisors revealed a notable decline in container rates this week, marking a continuation of the downward trend. According to Drewry’s composite World Container Index, there was a significant 6% decrease, bringing the rate to $3,287 per 40-feet container. This figure stands at a staggering 82% higher compared to the rates recorded during the same period in 2023.
Rates on major trade routes experienced considerable dips as well. Freight rates from Shanghai to Rotterdam observed a 7% decrease, dropping by $294 to reach $3,650 per 40-feet box. Similarly, the rates from Rotterdam to Shanghai, Shanghai to Genoa, and Shanghai to New York saw a 6% decline, settling at $861, $4,449, and $5,458 per FEU (forty-foot equivalent unit) respectively.
The downward trajectory extended to other routes as well, with rates from Shanghai to Los Angeles witnessing a 5% decrease, totaling $4,272 per 40-feet container. Meanwhile, rates on New York to Rotterdam and Rotterdam to New York routes experienced a slight 1% drop, reaching $624 and $2,192 per FEU respectively.
However, amidst these reductions, rates on the Los Angeles to Shanghai route remained stable, offering a glimmer of stability in an otherwise fluctuating market.
Drewry’s projections for the near future anticipate a continued decline in spot rates. While the decrease is expected to persist in the coming weeks, the advisory firm suggests that the market is unlikely to experience a sudden and drastic crash.
The fluctuating container rates reflect the ongoing challenges and uncertainties in the global shipping industry. Factors such as supply chain disruptions, fluctuating demand, and geopolitical tensions continue to exert pressure on freight rates, contributing to the volatility witnessed in recent times.
As businesses navigate these challenges, staying abreast of market trends and developments becomes increasingly crucial. Drewry’s regular assessments provide valuable insights for stakeholders across the maritime and logistics sectors, aiding in informed decision-making and strategic planning.
Source/Credit: ShippingTelegraph+Drewry
