Asia - Europe spot container freight rates increased more than 100% due to Red Sea terrorism

A container ship (Photo: Atlas Obscura)

The Drewry World Container Index (WCI) reported a 61% gain for the two-week period ending January 4, 2024, reaching $2,670 per FEU. The weekly index was not reported on December 28, 2023 due to the holiday season.

The sharpest price increases were seen on the Asia-Europe and Asia-Mediterranean trade lanes, where many container ships have been diverted past the Cape of Good Hope rather the much shorter route through the Suez Canal so as to avoid the Red Sea where commercial shipping has come under attack from Yemini Houthi rebels.

According to analyst Linerlytica, earlier this week, the number of ships diverted through the Cape of Good Hope reached 262 ships, 3.4 million TEU or 12% of the global fleet.

For the Shanghai – Rotterdam route, Drewry reported that rates increased 115% to $3,577/FEU compared to two weeks earlier. For the Asia - Mediterranean route, the Shanghai - Genoa route increased by 114% to 4,178 USD/FEU.

However, even non-Red Sea routes reported sharp increases in spot rates, with Shanghai to Los Angeles rates up 30% from two weeks earlier at $2,762/FEU.

The Shanghai Container Freight Index (SCFI) rose 40% for the week ending December 29, 2023.

“Drewry expects East-West spot prices to increase in the coming weeks due to the Red Sea/Suez situation,” Drewry said.

Read more:

• International shipping and logistics market update - Week 01/2024
• Charter rates for container ships soar due to Red Sea route diversions
• SCFI index soared 40% as ships diverted around Cape of Good Hope
• MSC Statement on MSC UNITED VIII Incident in Red Sea
   

Source: Phaata.com (According to SeatradeMaritimes) 

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