Ocean shipping rates out of Asia fell by double-digits to the United States and Europe, new analysis shows, following the ramp-up in demand ahead of the Chinese New Year holiday.
The Drewry World Container Index (WCI) decreased 10% to $2,212 per forty-foot equivalent unit (FEU) for the second consecutive week, primarily on weaker rates on trans-Pacific and Asia–Europe trade routes.
Softer post-holiday demand led carriers to increase blanked (cancelled or postponed) sailings, Drewry said. Spot rates from Shanghai to New York were 11% lower at $3,191 per FEU; Shanghai to Los Angeles prices decreased 12% to $2,546 per FEU.
Drewry expects freight rates on the trade to decline further in the coming weeks.
A weakening market comes faces major carriers re-starting scheduled services through the Suez Canal and Red Sea, a key Asia route to the United States but one fraught since late 2023 with risk from sectarian violence.
Maersk (MAERSK-B.CO) was scheduled to resume rotations on the Suez route as of today while CMA CGM earlier announced expanded sailings there only to re-route three Asia-Europe services away from the region and around the tip of Africa without explanation.
Maersk has tested smaller vessels as it readies its India-U.S. East Coast scheduling, in an effort to regulate the re-introduction of capacity amid falling rates.
Drewry said Asia–Europe spot rates declined for the second consecutive week. Shanghai–Rotterdam dropped 9% to $2,510 per FEU and Shanghai–Genoa fell 8% to $3,520.
“These conflicting operational decisions by carriers [in the Red Sea] suggest that effective shipping capacity will be reintroduced to the market gradually rather than all at once,” Drewry said in a release. “This ‘drip-feed’ approach allows carriers to carefully assess risk and adjust their future networks, preventing a catastrophic collapse in spot rates.
Find more articles by Stuart Chirls here.
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