Spot rates in container shipping on the Asia-Europe route have risen sharply once again. According to Drewry’s World Container Index, the cost of transporting a 40-foot container from Shanghai to Rotterdam rose by 15 per cent this week.
This brought the average price to $4,342 per container. The rise is in line with a market where the peak season has now been underway for a month. Shippers have arranged for imports from Asia to be shipped particularly early this year, partly due to higher fuel surcharges that came into effect on 1 July.
According to Drewry, container shipping lines are once again requiring all available vessel capacity this week to cope with the volumes. Shippers want to be sure of space on board and are therefore accepting higher rates and surcharges.
Even after 1 July, the market shows no sign of settling down. MSC has already announced a further rate increase for the first half of July. The shipping line intends to charge $7,500 per 40-foot container on the Asia–Europe route.
Peak season surcharges are also rising further. From 7 July, Maersk is increasing its Peak Season Surcharge on the Asia–Europe route to $1,500 per 40-foot container. Drewry expects spot rates to continue rising in the coming weeks.
The current price level is now 37 per cent higher than it was a year ago. Two years ago, during the Red Sea crisis, rates even rose to over $8,000 per container. According to Xeneta analyst Peter Sand, current rates could once again approach that peak.
Further information on international container flows can be found on the pages covering sea freight, container handling and sea freight rates.
Sand warns that shipping lines must be careful not to hit shippers too hard with higher rates and poorer service. Delays are occurring, and even shippers with long-term contracts may be told that their cargo cannot be carried because ships are already fully booked.
According to Sand, shipping lines risk damaging their relationships with customers as a result. When prices fall again later and overcapacity returns, shippers will remember which shipping lines treated them the worst during the peak period.
…spot rates can fluctuate significantly due to peak season, fuel costs, alternative routes and available vessel capacity? As a result, import costs can change rapidly.
Stay up to date with container traffic, terminal capacity and developments in inland waterway transport and sea freight. Sign up now:
Stay informed about container congestion, terminal capacity and developments in inland shipping and ocean freight. Sign up now: