Spot rates for full-size shipping containers to the US and Europe from Asia are reportedly on the rise again, with three key routes all topping $6,000 for a 40-foot equivalent unit, latest industry data showed.
The spot dates on the three key routes have tripled since the end of 2023, though the pace of increases is moderating, according to the Drewry World Container Index.
Nearly six months of regular attacks on vessels in the Red Sea has stretched capacity in an industry responsible for moving about 80 percent of all international goods trade, disrupting the normal flow and leading to bottlenecks in some of Asia’s biggest ports, Bloomberg reported.
Singapore’s maritime gateway, among the world’s most vital crossroads for seaborne freight, is facing a sustained period of congestion, with the waiting time for berth space there is nearing five days, the report said, citing industry estimates.
The wait period ranges from one to four days in the Chinese ports of Ningbo, Shanghai and Qingdao.
On top of stretched supply, demand for goods is solid especially in the US.
Imports at the Port of Los Angeles, the busiest seaport in the US, remained above the pre-pandemic peak in the first five months of 2024 despite ticking down in May.
According to Drewry, the cost of a 40-foot container to move merchandise to Los Angeles from Shanghai last week rose 0.8 per cent to $6,025, marking the sixth straight week of gains.
The charge for Shanghai to Rotterdam increased 2.4 per cent to $6,177, the highest level since September 2022.
From Shanghai to Genoa, Italy, in the Mediterranean Sea – among the routes hardest hit by the shipping industry’s avoidance of the Red Sea – the rate rose by 3 per cent to $6,862, according to Drewry.
That was also the highest since September 2022.
Drewry said that it “expects that freight rates from China will continue to rise next week due to congestion issues at Asian ports”.
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