The composite index, as reported by Drewry Shipping Consultants, experienced a 16% increase over the past week, reaching US$4,072/feu, marking a 142% rise compared to the same period last year. A surge in demand, combined with blank sailings and logistical challenges, including adverse weather in Asia, has contributed to the spike in freight rates. Simon Heaney of Drewry highlighted the unexpected nature of the rapid increase in rates and mentioned the difficulty in pinpointing the exact causes due to the complexity of factors involved.
Freight rates from Shanghai to various destinations have seen significant increases; Shanghai to Rotterdam rates went up by 20% to US$4,999/feu, and to Los Angeles by 18%, reaching US$5,277/feu. Additionally, rates to Genoa rose by 15% to US$5,494/feu, and to New York by 13% to US$6,463/feu. Despite these increases, rates on some routes, such as Rotterdam to New York and Rotterdam to Shanghai, have shown minimal changes.
Drewry anticipates the current spike in rates to be a temporary situation, influenced by the addition of 1 million TEUs in tonnage this year and an average monthly increase of 250,000 TEUs. The consultancy also notes the potential impact of inventory replenishment and early peak season preparations on demand. Operational challenges at Asian ports, exacerbated by vessel shortages and the resulting blank sailings, have further complicated the situation. Heaney suggests that some importers might be building safety buffers in their inventories to mitigate potential supply chain disruptions.
Source: container-news.com