Spot container rates soar

Spot container freight rates from North Europe to China increased by 45 per cent this week, reaching a four-year high, according to market analysts Drewry.

The “World Container Index assessed by Drewry” market reading on the route from Rotterdam to Shanghai jumped to $1,076 per 40ft dry container today, from $740 last week.

“Our sources reported that ships are currently full and that carriers have demanded much higher rates – only some prior rate agreements remain in place,” said Philip Damas, head of Drewry’s logistics practice.

Drewry pointed out that it is highly unusual for the “backhaul” route from Europe to Asia – where vessels normally have load factors of less than 70 per cent – to see such spikes in rate levels and capacity shortages.

It believes the sailings cancelled by carriers in China following Chinese New Year contribute to a capacity crunch which has now reached Europe.

By contrast, rates on the route from China to North Europe continue to level off, with reported average prices of $1,643 per 40ft container today, down from $1,756 last Thursday and $2,212 on 12 January.