Spot rates from Shanghai to Los Angeles rose 6 percent to $2,438 per 40-foot container, while those from New York rose 4 percent to $3,568. Rates from Shanghai to Rotterdam rose 3 percent to $1,795 per 40-foot container, and from Shanghai to Genoa rose 5 percent to $1,955.
The Drewry World Container Index rose for the third consecutive week, rising 4.35 percent to $1,822 per FEU on Oct. 30 after a 17-week decline. Spot rates rose on key routes, led by Shanghai-Los Angeles and Shanghai-Genoa. Drewry expects short-term gains from new GRIs starting Nov. 1, but forecasts a weaker supply-demand balance and falling rates in the coming quarters.
Freight rates from Rotterdam to Shanghai rose 1 percent to $463 per FEU. However, rates from New York to Rotterdam decreased 1 percent to $846 per FEU, while those from Rotterdam to New York fell 2 percent to $1,678 per FEU. Rates from Los Angeles to Shanghai were stable at $706 per FEU.
Drewry expects a slight rate increase next week, driven by the implementation of General Rate Increases (GRI) on November 1. However, this boost is likely to be short-lived, with rates expected to drop soon after.
Shippers on the Asia-Europe trade route are attempting to increase spot rates by introducing higher freight all types (FAK) rates from November 1, with the aim of strengthening prices before the start of the new annual contract negotiation season.
Drewry’s Container Forecaster anticipates that the balance between supply and demand will weaken in the coming quarters, leading to a further contraction in spot rates.
Fiber2Fashion (KUL) News Desk
