Drewry Index soars; container freight rates up 11% this week

According to the latest container freight index released on Thursday by Drewry, the latest composite index of $3,511 per 40ft container is 147 per cent higher than the average 2019 (pre-pandemic) rate of $1,420.

Container freight began to rise last week after intense attacks in the Red Sea region by Houthi rebels. The upward trend has continued this week as well. The attacks have forced carriers to reroute ships through the African Cape of Good Hope. Such disruptions have not only delayed shipments but also increased freight charges.

The average composite index for the year-to-date is $3,241 per 40ft container, which is $524 higher than the 10-year average rate of $2,717 (inflated by the exceptional 2020-22 COVID period).

Freight rates from Shanghai to Rotterdam, Shanghai to Los Angeles, and Shanghai to New York increased by 12 per cent to $4,172, $4,476, and $5,717 per 40ft container respectively. Similarly, rates from Shanghai to Genoa increased by 11 per cent, or $481, to $4,776 per FEU.

Likewise, rates from Rotterdam to New York climbed by 2 per cent, or $49, to $2,209 per 40ft box, while rates from Rotterdam to Shanghai decreased by 2 per cent, or $16, to $679 per 40ft container. Rates from Los Angeles to Shanghai dropped by 1 per cent, or $7, to $692 per FEU, while rates from New York to Rotterdam remain stable at $628 per FEU.

Drewry expects ex-China freight rates to rise due to increased demand, tight capacity, and the need to reposition empty containers.

Fibre2Fashion News Desk (KUL)