Global Freight Rate Update, January 4, 2024

According to Drewry, spot freight rates on eight major routes continued to rise sharply upon the mounting tension in the Red Sea transits. Spot rates from China to Europe skyrocketed by more than 100% while the routes from China to the US also soared notably.

The composite index increased by 61% to $2,670 per 40ft container this week.

The latest Drewry WCI composite index of $2,670 per 40ft container is now 88% more than average 2019 (pre-pandemic) rates of $1,420. The average composite index for the year-to-date is $2,670 per 40ft container, which is $3 lower than the 10-year average rate of $2,673 (which was inflated by the exceptional 2020-22 Covid period).

Freight rates on Shanghai to Rotterdam skyrocketed by 115% or $1,910 to $3,577 per feu. Followed by rates on Shanghai to Genoa which rose by 114% or $2,222 to $4,178 per 40ft box.

Likewise, rates on Shanghai to Los Angeles elevated by 30% or $626 to $2,726 per 40ft container. Similarly, rates on Shanghai to New York increased by 26% or $784 to $3,858 per feu.

Also, rates on Rotterdam to Shanghai jumped by 17% or $80 to $546 per 40ft box. In the same way rates on Rotterdam to New York surged by 2% or $23 to $1,503 per box. While rates on Los Angeles to Shanghai and New York to Rotterdam remain stable.

Drewry anticipates East-West spot rates to increase in the coming weeks, due to the Red Sea/Suez situation.

From	To	Freight (USD/40’ container)	Weekly Change (%)	Yearly Change (%)
China	Northwest Europe	3,577	115%	91%
US East Coast	Northwest Europe	593	0%	-52%
China	South Europe	4,187	114%	-43%

From	To	Freight (USD/40’ container)	Weekly Change (%)	Yearly Change (%)
China	US West Coast	2,726	30%	39%
China	US East Coast	3,858	26%	2%
Northwest Europe	US East Coast	1,503	2%	-77%

From	To	Freight (USD/40’ container)	Weekly Change (%)	Yearly Change (%)
Northwest Europe	China	546	17%	-30%
US West Coast	China	776	0%	-32%

The abovementioned freight rates per container are effective as of January 4, 2024 and contain all applicable costs such as bunker adjustment fees (baf) and currency adjustment fees (caf).