Analysis by Drewry
World Container Index: Shanghai to Rotterdam(US$/40ft)
(Image Credit: World Container Index assessed by Drewry)
According to Drewry, container freight rates have been relatively stable in recent months but that has all changed in recent weeks with Asia to Europe rates plummeting since the closure of Chinese factories for the New Year holidays.
To give a sense of the rate erosion, the Shanghai-to-Rotterdam rate assessment of the World Container Index has declined for eight straight weeks, resting at just $1,180 per 40ft container on 26 March. The index has more than halved since the start of the year.
Some of the top line rate decrease can be attributed to lower bunker surcharges, but the influence of BAFs on pricing volatility is waning and the latest rate slump has more to do with carriers being powerless to stop the rot when ship utilisation falls below a threshold of around 90%.
Source: Drewry
