Drewry WCI further surges 7.5% but gains expected to be short-lived

Spot rates from Shanghai to Los Angeles rose 9 per cent to $2,647 per 40-foot container, while rates to New York increased 8 per cent to $3,837, supported by 1 November general rate increases (GRIs). Carriers continue to implement GRIs to counter downward pressure on spot rates due to increased capacity. However, this upward trend is expected to be short-lived, with rates likely to soften unless further GRIs are introduced.

Spot rates from Shanghai to Rotterdam increased 9 per cent to $1,962 per 40-foot container, and those to Genoa rose 8 per cent to $2,111.

Freight rates from Rotterdam to Shanghai were steady at $463 per FEU. However, rates from New York to Rotterdam gained 2 per cent to $865 per FEU, and rates from Los Angeles to Shanghai rose 1 per cent to $713 per FEU. In contrast, rates from Rotterdam to New York fell 1 per cent to $1,664 per FEU.

Carriers on the Asia–Europe trade lane are attempting to push spot rates higher by introducing elevated FAK rates ranging from $3,000 to $3,600 per 40-foot container, effective November 15, to bolster pricing ahead of the new annual contract negotiation season.

Drewry’s Container Forecaster expects the supply–demand balance to weaken in the coming quarters, which is likely to result in contracting spot rates.

ALCHEMPro News Desk (KUL)