The global container shipping market is facing renewed pressure as spot rates continue to decline on major trade lanes. According to the Japan International Freight Forwarders Association (JIFFA), Korea Ocean Business Corp.
(KOBC) reported that its KOBC Container Composite Index (KCCI) fell by 3.67% week-on-week to 1,993 points. The fall highlights the weakening demand and oversupply challenges in the shipping sector, affecting routes to Europe, the U.S., and Latin America.
Major Trade Lanes See Sharp Rate Declines
Container freight rates to the U.S. and Europe recorded significant drops. Shipments to the U.S. West Coast decreased by 6.16% to US$1,904 per FEU, while the U.S. East Coast fell 7.01% to US$2,996 per FEU.
Europe-bound cargo also experienced a decline of 5.13% to US$3,110 per FEU, and the Mediterranean trade lane slid 5.2% to US$3,120 per FEU. These figures suggest that weaker demand and competitive market pressures are continuing to push down prices.
Mixed Trends in Non-Main Routes
While major trade routes faced declines, non-main routes showed mixed performances. Rates to Latin America’s west coast increased 5.42% to US$2,995 per FEU, and Southern Africa rose 2.78% to US$3,958 per FEU. Similarly, shipments to Australia gained 2.92% to US$2,256 per FEU.
On the other hand, Middle East rates slipped 0.37% to US$2,446 per FEU, while 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 Holds Steady
In intra-Asia trades, rates showed more stability. Rates to Japan edged up 0.45% to US$221 per FEU, remained unchanged at US$50 per FEU to China, but fell 1.63% to US$963 per FEU to Southeast Asia. These figures indicate steady but cautious demand within Asia compared to long-haul routes.
The latest drop in the KOBC Container Composite Index underlines the volatility in the global container shipping market. With weakening demand on major lanes and mixed results in regional routes, shipping companies continue to face challenges in balancing capacity and costs. Unless demand recovers significantly, freight rates may remain under pressure, impacting global trade flows in the coming months.
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Source: CONTAINER NEWS
