- Planned mid-November rate hikes for container spot freight rates failed to hold, resulting in minor changes this week.
- Carriers are pushing for significant increases in Asia-Europe spot and contract rates, with new hikes planned for December.
- Intra-Asia spot rates surged by 45% due to pre-Christmas demand and tight shipping space.
Container spot freight rates saw little movement this week despite carriers’ efforts to implement mid-November rate hikes. The Drewry World Container Index (WCI) showed minimal fluctuations, with marginal changes on key routes like Shanghai-Rotterdam, reports Loadstar.
Mid-November Freight Hikes Fail
Container spot freight rates this week were virtually unchanged from last week, as planned mid-November rate increases from carriers have failed to stick.
The Drewry World Container Index (WCI) Shanghai-Rotterdam leg saw a 2% increase, closing at $4,043 per 40ft, while Shanghai-Genoa remained steady at $4,400.
Asia-Europe Contract Negotiations Begin
Carriers are pushing to hike Asia-Europe rates, with MSC and CMA CGM targeting $5,500 and $5,700 per 40ft, respectively. However, these targets were not achieved this week.
MSC plans to increase Far East-North Europe rates to $6,300 per 40ft on 1 December, while Hapag-Lloyd aims for $6,100 to North Europe and $6,400 to West Mediterranean ports.
Early Insights from Hapag-Lloyd
Hapag-Lloyd CEO Rolf Habben Jansen noted that early 2025 contracts show an increase over 2024 levels. Most contracts will close in Q1 2025.
The WCI’s Shanghai-Los Angeles rate fell 2% to $4,700 per 40ft, while Shanghai-New York held steady at $5,222 per 40ft.
Intra-Asia Spot Rates Surge
Intra-Asia spot rates rose 45% over two weeks to an average of $829 per 40ft, driven by tight space and pre-Christmas demand.
Drewry attributed the surge to blank sailings, peak season demand, and tight shipping space, which are expected to continue in late November.
Carriers’ Push for Higher Rates
Despite challenges, carriers remain optimistic about achieving higher rates, leveraging the pre-Christmas rush and tightening capacity.
The developments in container spot rates reflect broader trends in global trade, with regional variations and seasonal factors significantly influencing market dynamics.
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Source: Loadstar
