Container spot rates drop to their lowest levels since 2023
1 week ago
Container spot rates drop to their lowest levels since 2023
The container sector is entering its typical post-Lunar New Year slowdown, which usually lasts until April or May. While the drop in spot rates has been significant, the sector remains one of the more profitable in the shipping industry.
The weekly Drewry World Container Index fell by 5%, reaching $3,095 per FEU yesterday. Despite this decline, the index remains 118% higher than the pre-pandemic average of $1,420 in 2019.
The Shanghai Containerized Freight Index, published today, dropped another 6% week-on-week to 1,758.82 points, hitting levels not seen since 2023, before the Red Sea shipping crisis pushed rates higher last year.
“Carriers face a challenging road ahead to reverse the recent rate decline, with cargo volumes still subdued following the strong January cargo surge, which set new throughput records at major ports,” analysts at Linerlytica stated in a recent market report.
Source: Splash 247