Container freight rates across major global shipping routes have experienced notable fluctuations, reflecting weakening demand and shifting trade patterns. According to Japan International Freight Forwarders Association (JIFFA), the Korea Ocean Business Corp.
(KOBC) reported that its Container Composite Index (KCCI) slipped 3.67% week-on-week to 1,993 points. The fall is largely attributed to declining spot rates on routes from Busan to Europe, the U.S., and Latin America’s east coast.
Decline on Major Trade Lanes
Rates on major shipping routes continued to drop. The U.S. West Coast saw a significant decline of 6.16% to US$1,904 per FEU, while shipments to the U.S. East Coast dropped 7.01% to US$2,996 per FEU. Similarly, Europe-bound freight rates decreased 5.13% to US$3,110 per FEU, and Mediterranean lanes slid 5.2% to US$3,120 per FEU. These declines highlight weakening demand for trans-Pacific and Europe-bound shipments.
Mixed Trends on Non-Main Routes
In contrast, secondary routes showed mixed outcomes. Rates to Latin America’s west coast rose 5.42% to US$2,995 per FEU, while Southern Africa saw a 2.78% increase to US$3,958 per FEU. Australia also recorded a 2.92% rise to US$2,256 per FEU. However, the Middle East slipped 0.37% to US$2,446 per FEU, Latin America’s east coast plunged 8.2% to US$4,937 per FEU, and West Africa dropped 2.62% to US$4,491 per FEU.
Intra-Asia Market Movements
Within Asia, freight rates showed relative stability. Japan-bound rates edged up 0.45% to US$221 per FEU, while rates to China remained unchanged at US$50 per FEU. Conversely, shipments to Southeast Asia fell 1.63% to US$963 per FEU, indicating softer regional demand.
The latest container freight index reflects a cooling in global shipping demand, particularly on key trade lanes to the U.S. and Europe. While some non-main routes like Latin America’s west coast and Southern Africa experienced increases, overall trends suggest shipping companies may face continued pressure in the coming weeks. Intra-Asia stability provides some relief, but the broader market remains cautious amid global trade uncertainties.
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Source: CONTAINER NEWS
