Asia-Northern Europe freight dropped to $1000 per case.
As the Lunar New Year approaches in China, container shipping companies seem powerless to stop the rapid decline in the spot freight rate of containers.
WCI, the latest freight rate index of Deli, shows that the Asia-Nordic route has dropped by another 10% in the last week, bringing the index down to the price of $1,965 per 40-foot container, which has dropped by half in the past four weeks. If the freight rate of trade routes continues to decline at this rate, by Christmas, the spot freight rate of WCI index will be lower than $750 per TEU.
However, although WCI's spot freight rate has fallen below the watershed level of $2,000, Loadstar received an active offer from a freight forwarding company in China last week, that is, $1,000 per 40-foot container for shipment from all major ports in China to Felixstowe, Southampton and Gateway in London.
According to Lars Jensen, CEO of Vespucci Maritime, the liner market is officially experiencing a "hard landing", and the China Lunar New Year on January 22nd is the only light at the end of darkness. "The current trend of the market is that the spot freight rate bottoms out after the Lunar New Year." Jensen said.
According to the consultant, if the global economic recession is mild and inventory adjustment is the main driver of the demand slump, there may be a surge in freight volume next summer, which will cause the spot freight rate to soar again. However, if the economic recession becomes more severe and lasts longer, Jensen believes that the demand will continue to be suppressed next year, and the surge in freight volume will only occur before the Lunar New Year in China in 2024.
Jensen said: "In any case, the sharp drop in freight rates will cause a lot of operational chaos in the coming months, as shipping companies will continue to stop a large number of flights to prevent the drop in spot freight rates."
In fact, Maersk described the sharp drop in the spot freight rate of containers as "dramatic" in its latest Asia-Pacific market information, and said that the company was "adjusting" its service network "to adapt to the new reality".
Meanwhile, in the trans-Pacific region, the Baltic Shipping Index (FBX01) from Asia to the west coast of the United States dropped by 26% this week to $1,426 per 4-foot container, and the spot freight rate has depreciated by half in the past two weeks.
In addition, on the Atlantic coast, spot freight rates are catching up. The freight rate of FBX03 Asia to the east coast of the United States dropped by 19% this week to $3,723 per 40 feet.