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According to the latest container freight index released on Thursday by Drewry, the latest WCI composite index of $4,716 per 40ft container is 232 per cent more than average 2019 (pre-pandemic) rates of $1,420.
The average composite index for the year-to-date is $3,384 per 40ft container, which is $654 higher than the 10-year average rate of $2,730 (which was inflated by the exceptional 2020-22 COVID-19 period).
The freight rates from Shanghai to Genoa increased 17 per cent or $971 to $6,664 per 40ft container. Similarly, rates from Shanghai to Rotterdam increased 14 per cent or $762 to $6,032 per FEU (Forty-foot Equivalent Unit). Likewise, rates from Shanghai to Los Angeles increased 11 per cent or $585 to $5,975 per 40ft box. Also, rates from Shanghai to New York rose 6 per cent or $379 to $7,214 per 40ft box.
Conversely, rates from Rotterdam to Shanghai decreased 5 per cent or $35 to $642 per FEU. Also, rates from Rotterdam to New York dropped 4 per cent or $86 to $2,136 per 40ft container. Meanwhile, rates from Los Angeles to Shanghai and New York to Rotterdam remained stable. Drewry expects freight rates ex-China to continue rising next week due to the onset of the early peak season.
Container freight rates were fuelled after intensified attacks in the Red Sea region by Houthi rebels amid the Israel-Hamas conflict. The upward trend has continued this week also. The attacks forced carriers to reroute ships through the African Cape of Good Hope, causing delays in shipments and increasing freight charges. Seasonal impact was also visible in hike of freight rates.
Fibre2Fashion News Desk (KUL)