Drewry’s World Container Index (WCI) was up 12% week-on-week on 6 June at $4,716 per feu. Meanwhile the Shanghai Containerized Freight Index (SCFI) on 7 June stood at 3184.87 points, a 4.6% increase, slowing from the previous week’s double-digit percentage jump that took it to levels not seen since August 2022.
Rerouting ships from the Red Sea via the Cape of Good Hope casuing a shortage of capacity, growing port congestion, and rising demand, have all conspired to cause a spike in spot rates for containers on key routes.
Related: Peak season comes early as container rates continue to soar
HSBC Global Research commented in a report issued today that it had underestimated the timing and strength of an earlier peak season in long-haul trades, which fuelled the recent rally in spot container freight rates.
Looking ahead it said: “We believe spot rates might still have momentum to go higher given strong near-term forward bookings and healthy vessel utilisations in June. Congestion and equipment shortages could remain sticky near term, which may take months to fully unwind.”
Related: Red Sea rerouting causing Asian port congestion
According to Drewry rates for Shanghai – Genoa were up 17% over the last seven days at $6,664 per feu, while Shanghai to Rotterdam saw a 14% increase to $6,032 per feu.
On the Transpacific rates from Shanghai to Los Angeles were up 11% at $5,975 per feu. Shanghai to New York rose 6% to $7,214 per feu.
Looking ahead Drewry said it, “expects freight rates ex-China to continue rising next week due to the onset of the early peak season”.
HSBC said that a front loading of peak season demand could though present a downside risk to container freight rates later in the second half of 2024.