Analysis by Drewry
Following 14 weeks of falling Asia to North Europe spot market freight rates, carriers finally had a win last week as rates on that route surged by 153%. The World Container Index benchmark for Shanghai to Rotterdam went from a data series low of $670 per 40ft container to $1,698/40ft (see above figure).
It’s too early to say whether the rate increase will stick or if it will follow the pattern of last year: one early-month GRI-induced spike followed by weeks of erosion. More GRIs (in the now typical $1,000 per teu range) have been announced for June and Drewry expects spot rates to fall in the interim weeks.
World Container Index Shanghai to Rotterdam
(World Container Index assessed by Drewry)
According to Drewry, carriers received some respite last week as Asia to Europe spot rates surged after weeks of decline. However, weak first-quarter demand figures have exposed their gamble on ULCVs.
The figure above shows just how bad things have been for carriers and even after the latest jolt, spot rates remain well below where they stood for much of last year. Despite their remarkable volatility, following the general spot rate trend does provide a very reliable indicator of demand.
Source: Drewry
