June 21, 2024
The latest container rate updates show Asia-Europe leading a continuing rise in box rates, with congestion in Asia expected to bring further increases.
Drewry’s World Container Index (WCI) for 20 June showed a 7% increase on-week in its composite index to $5,117 per feu. Putting the recent rate rises in context, the latest figure is 233% up on the same week last year, and 260% above average pre-pandemic rates of $1,420 in 2019, said Drewry.
Container rates have been on the rise since late in 2023 as Houthi attacks in the Red Sea divert ships around the longer Cape of Good Hope route between Asia and Europe, soaking up capacity with longer voyage distances and times. The market situation is precarious as there remains a structural overcapacity in the liner trades, worsened by ongoing vessels deliveries, but supply and demand remain tight as long as the Red Sea remains effectively closed.
