In the price and market structure bucket, Drewry’s World Container Index rose for a second consecutive week as carriers restricted transpacific capacity. The benchmark gained 1% to $4,339 per 40 foot container, with stronger United States bound rates outweighing declines on Asia to Europe trades.
Rates from Shanghai to New York jumped 10% to $8,706, while Shanghai to Los Angeles rose 6% to $6,244. Carriers cancelled 10 sailings in each of the past two weeks and planned another seven cancellations for the following week.
The direction was weaker in Europe. Shanghai to Genoa fell 8% to $5,080, and Shanghai to Rotterdam declined 5% to $4,425. Carriers announced new freight all kinds rates of $6,700 to $7,100 for Asia to Mediterranean routes from August 15, but Drewry questioned whether softer demand would support them.
Xeneta said nearly six months of Middle East disruption had started to lift long term contract prices. Since the end of February, contract rates from the Far East to the United States West Coast and East Coast rose 41% and 40%, respectively, while North Europe rates gained 41%.
Spot prices remain far above contract levels, strengthening carrier positions in negotiations. Xeneta measured Far East to United States West Coast spot rates 271% above levels before the crisis and found a $4,103 gap per forty foot equivalent unit between spot and long term rates on that route.