The market index for Asia to North-Europe is still on the decline, and the average for a 20-foot saw a 19% drop since May 26 compared to the June 26 price comparison service for sea freight, Xeneta reported. The market average for a 40-foot in Asia to North Europe performed similar with a 20% decline in container shipping rates in the same period.
The rate pressure is higher than ever with the announced general rate increase on July 1, where ocean carriers are attempting to push GRI’s up to $1,000 per 20-foot container – the highest increase ever. The rates are expected to rise from today’s levels, as the average prices for trade lanes like Shanghai to Rotterdamis as low as $877 per 20-foot and $1,488 per 40-foot, last tracked on June 26. Compared to May, that’s a 13% decrease on 40-foot and 10% decrease on 20-foot.
“We saw in March after the GRI was released that the prices held steadily for a couple of weeks, but dropped significantly in the beginning of April. So it’s pure guesswork to say how long prices will hold with ocean rates being as volatile as they are,” said COO of Xeneta, Thomas Sørbø.“The lowest rate we’ve seen per today is less than $500 on Qingdao to Le Havre for a 20-foot container.”
Xeneta’s market index also reported that the average rate for a 40-foot container, on several other key trade lanes like Shanghai to Felixstowe, was at $1,500 and Tianjin to Antwerpen was at $1,583.These two trade lanes are just a small part of the growth Xeneta has seen with its 2,300 port pairs and it continues to grow as more shippers and suppliers take part.