Weak demand in Europe and the United States has driven freight rates downwards. Freight charges from China to Europe have fallen sharply, although rates from Europe to the US remain high.
The Drewry WCI composite index dropped by 4 per cent to $3,095 per 40ft container as of 24 October 2024, a 70 per cent decrease from the September 2021 peak.
Rates fell due to weaker demand in Europe and the US, particularly on routes from China.
However, routes from Europe to the US saw rate increases.
Drewry forecasts a slight continued decline in ex-China rates over the coming weeks.
The average year-to-date composite index stands at $4,036 per FEU, which is $1,200 above the 10-year average of $2,836 (an increase influenced by the extraordinary 2020–22 COVID period).
Freight rates from Shanghai to Rotterdam decreased by 7 per cent, or $241, to $3,132 per FEU. Rates from Shanghai to New York declined by 6 per cent, or $343, to $5,266 per FEU, and rates from Shanghai to Genoa dropped by 4 per cent, or $142, to $3,296 per FEU. Similarly, rates from Shanghai to Los Angeles fell by 3 per cent, or $127, to $4,814 per FEU, while rates from Los Angeles to Shanghai shrank by 1 per cent, or $6, to $710 per FEU.
Conversely, rates from Rotterdam to New York surged by 28 per cent, or $580, to $2,663 per FEU, and rates from New York to Rotterdam rose by 4 per cent, or $32, to $761 per FEU.
Drewry anticipates that rates (ex-China) will continue to experience a marginal decline in the coming weeks.
Fibre2Fashion News Desk (KUL)
