- Transpacific Spot Rates Decline for Third Straight Week.
- Blank Sailings Reduce, Capacity Set to Rise Next Week.
- Asia–Europe Rates Dip After Six-Week Uptrend.
The Drewry World Container Index has dropped by 2%, now sitting at $1,806 for a 40ft container. This decline is largely due to falling prices on the Transpacific and Asia–Europe routes, reports Drewry.
Transpacific Rates Take a Hit for the Third Week
Spot rates for the Transpacific headhaul are still on the decline, with the Shanghai–New York route down 6% to $2,735 and the Shanghai–Los Angeles route down 4% to $2,089 per 40ft container. According to the Drewry Container Capacity Insight, blank sailings are expected to decrease next week, which should increase available capacity. Drewry predicts a slight dip in rates as a result.
Asia–Europe Rates Dip After Six Weeks of Increases
After a steady six-week rise, Asia–Europe spot rates have slipped by 1%. The rate for Shanghai–Genoa is now $2,300, while Shanghai–Rotterdam is at $2,165 for a 40ft container. Carriers are trying to boost spot rates by introducing higher FAK levels, ranging from $3,100 to $4,000, starting December 1, in anticipation of annual contract negotiations.
Belgium Strike Causes Congestion in Antwerp
A national strike in Belgium has thrown a wrench in port operations, leading to increased congestion at the Port of Antwerp. The situation is likely to worsen as some carriers plan to resume routing through the Suez Canal, which will further strain port capacity and drive up spot rates.
Weaker Supply–Demand Balance on the Horizon
The Drewry Container Forecaster is predicting a further weakening of the supply-demand balance in the upcoming quarters, especially if normal Suez Canal transit patterns make a comeback.
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Source: Drewry
