Container spot rates continue their downward march

by | Sep 5, 2022 | Global News | 0 comments

Spot rates on most major container trades have fallen significantly on-year, but a few routes bucked the overall trend.

Gary Howard | Sep 02, 2022

Most recently, Drewry’s composite analysis of box spot rates on September 1 showed a 5% decrease for the week, the 27th consecutive weekly decline.

Drewry’s index sits 43% lower than at the same point last year at $5,662 for a 40-foot box, 45% down on the September 2021 high but 55% above the five-year average.

Related: Change in the air for long-term container rates

Xeneta looked at nine of its top 13 container trades and found one up by $3.5k per FEU and another down by $4.5k per feu.

Mediterranean – US East Coast spot rates increased by $3,430, and North Europe – East Coast rates were up by $2,630 per feu since the end of August 2021, said Xeneta.

Related: Container spot rates keep falling, but what will be the floor?

Weighing down the sector, rates on the Asia – Europe trades have fallen $4,620 per feu, Asia – Med by $2,340 and Asia – US West Coast by $2,150, said Xeneta. “Almost every major trade has experienced a significant change in the spot rate compared to a year ago,” it added.

Elsewhere, Xeneta noted no change in spot rates on the US West Coast – Asia route, steady at $1,250 per feu.

While the analyst’s methods may differ, both point to an overall decrease in spot rates over the past year, but to levels still above longer-term averages.

Looking closer at changes over the past week, Drewry noted a 9% drop on Shanghai – Los Angeles to $5,562 per feu, 5% drops on Shanghai – Rotterdam and Shanghai – Genoa and a 3% drop on Shanghai – New York.

Los Angeles – Shanghai gained a small amount of ground, up 1% to $1,262 per feu

“Drewry expects the index to decrease in the next few weeks,” it said.

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Reference: https://www.seatrade-maritime.com/containers/container-spot-rates-continue-their-downward-march