The Drewry World Container Index (WCI) reports a 61% increase in the two-week period ending on January 4, 2024, reaching $2,670 per FEU. The weekly index was not reported on December 28, 2023, due to the holiday season.
The most significant price increase has been observed on the Asia-Europe and Asia-Mediterranean shipping routes, where many container vessels have been rerouted via the Cape of Good Hope to avoid the Red Sea instead of taking the much shorter Suez Canal route, where commercial shipping is under attack by Yemeni Houthi rebels.
According to Linerlytica analysts, at the beginning of this week, the number of vessels rerouting via the Cape of Good Hope reached 262 ships, totaling 3.4 million TEUs or 12% of the global fleet.
For the Shanghai-Rotterdam route, Drewry reports a 115% increase in freight rates to $3,577 per FEU compared to the previous two weeks. For the Asia-Mediterranean route, the Shanghai-Genoa route increased by 114% to $4,178 per FEU.
However, even routes not passing through the Red Sea report a significant increase in immediate delivery freight rates, with the Shanghai to Los Angeles route increasing by 30% compared to the previous two weeks to $2,762 per FEU.
The Shanghai Containerized Freight Index (SCFI) increased by 40% for the week ending on December 29, 2023.
"Drewry predicts that East-West spot rates will continue to rise in the coming weeks due to the situation in the Red Sea/Suez," according to Drewry.
Source: Phaata.com (According to SeatradeMaritimes)
