- Spot ocean freight rates from Shanghai have fallen 46.4% year-to-date, according to the Shanghai Containerized Freight Index (SCFI).
- Rate declines vary widely across trade lanes: West Africa routes are less impacted than routes to Santos or North Europe.
- Despite the downturn, Africa-bound trade lanes provide the highest revenue per nautical mile.
- MSC has reallocated its largest vessels to West Africa, capitalizing on better returns and efficient transshipment via Lomé.
Spot freight rates from Shanghai have seen a significant drop of 46.4% since the beginning of 2025, according to the latest data from the Shanghai Containerized Freight Index (SCFI). However, the extent of the rate drop varies considerably by destination.
While all deep-sea trade lanes reported reductions, the Shanghai-to-West Africa (Lagos) route experienced a comparatively moderate decline of 17.5%. In contrast, the drop was much steeper on other major routes: 73.9% for Shanghai to Santos (Brazil), and 57.9% for Shanghai to North Europe.
Earning Potential by Route
When adjusting for sailing distances, freight services to Africa currently yield the highest earnings per nautical mile:
- 36.7 US cents/TEU for shipments to West Africa
- 29.2 US cents/TEU for shipments to South Africa
In contrast, the Shanghai to North Europe route, despite being longer and more established, offers the lowest income, just 8.7 cents per nautical mile per TEU, even though it passes by West Africa on its westbound journey.
Strategic Fleet Reallocation by MSC
Faced with these shifting profitability trends, Mediterranean Shipping Company (MSC) has strategically moved its largest “Megamax” vessels—capable of carrying 24,000 TEUs—from the Far East-Europe trade lane to the Far East-West Africa route.
This move may appear unexpected given the relatively lower volumes associated with West African markets. However, it is made feasible through MSC’s use of Lomé as a transshipment hub, allowing cargo to be redistributed efficiently between Europe and India.
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Source: LinkedIn India
