Spot container freight rates from North Europe to China increased by 45% last week, reaching a four-year high.
The World Container Index by Drewry showed that rates from Rotterdam to Shanghai jumped to US$1,076 per 40-foot dry container on March 9, up from $740 the preceding week.
“Our sources reported that ships are currently full and that carriers have demanded much higher rates—only some prior rate agreements remain in place,” said Philip Damas, head of Drewry’s logistics practice.
He noted that it is highly unusual for the “backhaul” route from Europe to Asia—where vessels normally have load factors of less than 70%—to see such spikes in rate levels and capacity shortages.
In Drewry’s opinion, the sailings cancelled by carriers in China following Chinese New Year contribute to a capacity crunch which has now reached Europe.
By contrast, rates on the route from China to North Europe continued to level off, with reported average prices of $1,643 per 40-foot container on March 9, down from $1,756 on March 2 and from $2,212 on January 12.
Last week, the composite index of the World Container Index, which takes into account rates on 11 routes to and from Europe, the U.S., and China, was 110% higher than this time last year, when the container shipping market was facing weak traffic volume and a price war.
Photo: Tim Tregenza
