Freight Rates Staying under Pressure

The latest reports suggest that the trend of declining freight rates that started last week will continue as carriers are starting to push back October general rate increase until China’s Golden week.

Shanghai Containerised Freight Index reveals Asia-Europe trade prices are on their lowest since October 2013, marking a 9.5% drop to USD 822 per TEU. Similarly, Asia-Mediterranean route rates declined by 9.1%, to USD 1,125.

However, this year’s low prices are still above the prices recorded for the same period last year, with Europe-Asia and Mediterranean-Asia rates recorded at USD 765 and USD 837, respectively.

Despite the seemingly low price on both routes, last week’s rates are still higher than in the same week last year, when rates to Europe and the Mediterranean from Asia were recorded at USD 765 and at USD 837.

Asia-U.S. routes are also continuing a downward trend. Shanghai to U.S. west coast rates dropped another 7.5%, and are currently USD 1,930 per TEU. The U.S. east coast-Asia Freight rates declined by 5%, now standing at USD 4,085 per TEU.

Drewry’s Hong Kong-Los Angeles container freight rate benchmark is down by around 10%, now at USD 1,875 per FEU.

Ahead of the China’s Golden Week next month,decreased by just short of 10%, to USD 1,875 per FEU.

Drewry is expecting rates to remain under pressure as the industry’s peak season is winding down.