Asia-Europe in price slump

However, rates have remained 15% overall and are higher than a year ago.

According to the World Container Index assessed by Drewry, prices for SIA-Europe dropped ‘unexpectedly on the Shanghai-Rotterdam route,’ by $160 as it cost $1705 for a 40ft box compared to last year’s figures. Prices from Shanghai to Genoa dipped by 10% with the prices averaging around $1,608 per feu.

However, Drewry predicted: “More rate hikes and prudent supply during the peak season should lift rates from August”, in regards to the Asia-Europe trade as rates have continued to be consistently higher compared to the previous year.

Meanwhile, a “slow start to the peak season is weighing down transpacific eastbound rates”, Drewry noted.

Average spot rates from Shanghai to New York lost $183 (8%) to reach $2,202 for a 40ft box whilst the rates from Shanghai to Los Angeles dropped by $71 (5%) to $1,242. Compared with last year, Shanghai to New York prices are up 15%, while Shanghai to Los Angeles are currently down 5%, year on year.

Overall, average prices on the World Container Index assessed by Drewry, a composite of container freight rates on 8 major routes to and from the US, Europe and Asia, were down by 6.3% last week to $1421 per 40ft container.

For the year-to-date, the average composite index of the WCI, assessed by Drewry is $1,546 per 40ft container, which is $120 lower than the five-year average of $1,666 per 40ft container. But despite being down on the average, it remains 15% better than last year’s results.