Container Spot Rates Dive as Lunar New Year and Suez Resumption Rattle the Market

By Gavin van Marle (The Loadstar) –

The downward spiral of container spot freight pricing accelerated this week, as China begins its lunar new year celebrations this weekend to see in the Year of the Snake.

This week’s World Container Index (WCI) from Drewry saw the transpacific spot rate on its Shanghai-Los Angeles leg lose 8% week on week, to finish at $4,.813 per 40ft, while the Shanghai-New York route lost 7%, to end at $6,377 per 40ft.

Similarly, Xeneta’s XSI transpacific index fell 3%, to $5,162 per 40ft.

But the greatest damage to carrier earnings was seen on Asia-Europe trades, where warnings of a nascent rate war earlier this month appear to be borne out.

The WCI’s Shanghai-Rotterdam leg crashed 19% on last week, to $3,434 per 40ft, which is some 31% down year on year, while the Shanghai-Genoa route declined 10% week on week, to $4,562 per 40ft.

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