News
Container exports from China decreased in volume in Week 43 due to weaker consumer sentiment despite the fact that container movement normally grows this time of the year in preparation for the Christmas and year-end shopping sprees. Freight rates, as such, fluctuated bearishly on major trade routes. The composite Shanghai Containerized Freight Index, an indicator for spot rates for ex-Shanghai containers that do not include THCs, fell 4.6% from the previous week to 1,697.65 points, which has remained on the decline for 19 weeks running, according to the Shanghai Shipping Exchange (SSE).
Spot rates for exports from Shanghai declined 6.3% to $1,902 per FEU on the route to the west coast of North America, which have trended down for the 23rd week in a row and fell below the $2,000-per-FEU line for the first time in 29 months since May 2020. Rates waned 5.7% to $5,318 per FEU for exports to the east coast, which have continued to drop for 22 consecutive weeks.
Exports to Europe were moved at a rate of $2,102 per TEU, which dipped 11.6% and have stayed on a downward trend for 21 straight weeks, while rates for those to the Mediterranean slid 8.7% to $2,344 per TEU.
The route to the Middle East Gulf was the only north-south trade lane where spot rates improved. Shipping capacity was effectively controlled by service suspensions, helping rates increase 19% to $1,727 per TEU. In contrast, spot rates declined 9.6% to $1,354 per TEU for exports to Australia and New Zealand, and 10.2% to $4,541 per TEU for those to South America.
In intra-Asia waters, spot rates remained unchanged at $298 per TEU for exports to Japan’s Kanto region but went down 1% to $320 per TEU for those to Kansai. Rates dipped 1.7% to $346 per TEU on the route to Southeast Asia, which have stayed on a weakening trend for three weeks in a row. Rates were sluggish on the trade to South Korea as well, decreasing 0.4% to $254 per TEU.
