Container spot rates climb for third week, but Drewry warns momentum unlikely to last

The Drewry World Container Index increased 4% to $1,822 per 40-foot container this week, marking the third straight week of gains following a prolonged 17-week decline.

This makes interesting reading for the U-Freight group with our strong presence in the global container shipping arena.

Drewry reports that spot rates from Shanghai showed notable increases across major trade lanes. Rates to Los Angeles rose 6% to $2,438 per 40-foot container, while those to New York climbed 4% to $3,568. On the Asia-Europe routes, rates from Shanghai to Rotterdam increased 3% to $1,795 per 40-foot container, and rates to Genoa rose 5% to $1,955.

According to Drewry, the rate increases are being driven by the implementation of General Rate Increases (GRIs) scheduled for November 1. On the Asia-Europe trade route, carriers are introducing increased Freight All Kinds (FAK) rates effective from November 1 in an attempt to elevate spot rates before the start of the new annual contract negotiation season.

However, Drewry expects the current momentum to be short-lived, with rates expected to decline soon after the GRI implementation. The company’s Container Forecaster anticipates that the supply-demand balance will weaken in the coming quarters, which will cause spot rates to contract.

The recent uptick in rates comes after a sustained period of decline in the container shipping market, reflecting the ongoing volatility in global freight rates as carriers navigate shifting demand patterns and capacity dynamics.

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