Spot rates for maritime container transport continue their downward trend, according to the Drewry World Container Index composite, published on Thursday, August 15, 2024. The current value stands at $5,428 for a 40-foot container, 48% lower than the pandemic peak of September 2021 when rates reached $10,377, and 2% down from the previous week. Despite this decline, the current index is still 282% higher than the pre-pandemic 2019 average of $1,420.
Data analysis reveals that the average composite index for the current year is $4,039 per FEU, a figure $1,242 higher than the ten-year average of $2,798. This decade-long average has been significantly influenced by the extraordinary market conditions during the COVID-19 period (2020-2022), when demand for maritime transport surged unprecedentedly.
In Europe, rates on the Shanghai-Rotterdam and Shanghai-Genoa routes are 2% lower than the previous week, standing at $7,756 and $7,182 per FEU, respectively. In the United States, the average rate from Shanghai to Los Angeles has decreased by 3% to $6,303, while the rate from the Chinese port to New York has dropped by 2% to $8,764.
On transatlantic routes, the New York-Rotterdam route saw a slight decrease of 1%, with a $4 reduction bringing the rate to $762 per 40-foot container. Conversely, rates on the Rotterdam-Shanghai, Los Angeles-Shanghai, and Rotterdam-New York routes remained stable, with no significant changes.
Drewry believes that spot rates have now peaked. However, ongoing disruptions in global transportation are expected to keep prices elevated for some time. This scenario reflects an unstable balance between supply and demand, influenced by external factors such as global supply chain disruptions and economic uncertainty. Shipping companies and shippers now face the challenge of navigating a complex environment, where long-term planning becomes essential to mitigate risks associated with tariff fluctuations.
