Global Freight Rate Update, December 21, 2023

According to Drewry, spot freight rates on eight major routes extended their gains into third week with rates from China to Europe surging notably and bearing brunt of the deepening Red Sea bottleneck.

The composite index increased by 9% on the week to $1,661.00 per 40ft container. Meanwhile, it has dropped by 22% when compared with the same week last year.

The latest Drewry WCI composite index of $1,661 per 40ft container is now 17% more than average 2019 (pre-pandemic) rates of $1,420. The average composite index for the year-to-date is $1,674 per 40ft container, which is $998 lower than the 10-year average rate of $2672 (which was inflated by the exceptional 2020-22 Covid period).

Freight rates on Shanghai to Rotterdam increased by 16% to $1,667 per feu, followed by rates on Shanghai to Genoa swelled by 15% to $1,956 per 40ft box.

Likewise, rates on Shanghai to New York rose by 8% to $3,074 per 40ft container. Similarly, rates on Shanghai to Los Angeles, Rotterdam to Shanghai and Los Angeles to Shanghai grow up by 6% to $2,100, 3% to $466 and 1% to $774 per feu respectively.

Conversely rates on Rotterdam to New York inched down by 2% to $1,480 per 40ft box. While rates on New York to Rotterdam remain stable.

Drewry anticipates East-West spot rates on lanes to remain close to current levels, overall, in the upcoming weeks.

From	To	Freight (USD/40’ container)	Weekly Change (%)	Yearly Change (%)
China	Northwest Europe	1,667	16%	-2%
US East Coast	Northwest Europe	592	0%	-53%
China	South Europe	1,956	15%	-32%

From	To	Freight (USD/40’ container)	Weekly Change (%)	Yearly Change (%)
China	US West Coast	2,100	6%	5%
China	US East Coast	3,074	8%	-21%
Northwest Europe	US East Coast	1,480	-2%	-79%

From	To	Freight (USD/40’ container)	Weekly Change (%)	Yearly Change (%)
Northwest Europe	China	466	3%	-41%
US West Coast	China	774	1%	-34%

The abovementioned freight rates per container are effective as of December 21, 2023, and contain all applicable costs such as bunker adjustment fees (baf) and currency adjustment fees (caf).