Global Freight Rate Update, August 22, 2024

According to Drewry, spot freight rates mostly declined for another week, with China-Europe routes experiencing the largest drops. On the other hand, China-US routes saw a slight uptick.

The composite index decreased for the fifth week by 2% to $5,319 per 40ft container this week.

The latest Drewry WCI composite index of $5,319 per 40ft container is 49% below the previous pandemic peak of $10,377 in September 2021, but it is 274% more than the average 2019 (pre-pandemic) rate of $1,420. The average composite index for the year-to-date is $4,077 per 40ft container, which is $1,273 higher than the 10-year average rate of $2,803 (which was inflated by the exceptional 2020-22 Covid period).

Freight rates from Shanghai to Genoa decreased 5% or $394 to $6,788 per 40ft container. Similarly, rates from Shanghai to Rotterdam dropped 4% or $327 to $7,429 per feu.

Likewise, spot rates from Rotterdam to New York fell 1% or $27 to $1,934 per 40ft box. Conversely, rates from Shanghai to Los Angeles increased 2% or $98 to $6,401 per 40ft container.

Similarly, rates from Shanghai to New York inched up 1% or $47 to $8,811 per feu. Meanwhile, rates from Rotterdam to Shanghai, Los Angeles to Shanghai and New York to Rotterdam remained stable.

The recent uptick in transpacific Eastbound freight rates to the US West Coast and East Coast could be attributed to the looming ILA port strike on October 1 and the anticipated rush to ship goods before the strike begins.

Therefore, Drewry expects rates on Transpacific trade to continue increasing in the coming weeks.

From	To	Freight (USD/40’ container)	Weekly Change (%)	Yearly Change (%)
China	Northwest Europe	7,429	-4%	340%
US East Coast	Northwest Europe	759	0%	-2%
China	South Europe	6,788	-5%	230%

From	To	Freight (USD/40’ container)	Weekly Change (%)	Yearly Change (%)
China	US West Coast	6,401	2%	186%
China	US East Coast	8,811	1%	157%
Northwest Europe	US East Coast	1,934	-1%	22%

From	To	Freight (USD/40’ container)	Weekly Change (%)	Yearly Change (%)
Northwest Europe	China	627	0%	18%
US West Coast	China	710	0%	-16%

The abovementioned freight rates per container are effective as of August 22, 2024 and contain all applicable costs such as bunker adjustment fees (baf) and currency adjustment fees (caf).