Sea freight fell sharply! The West and East US plummeted! Is it expected that the European line will fall by more than 70%?

According to the latest report released by the Shanghai Shipping Exchange, freight rates on most routes are showing a downward trend due to weakening demand. The latest Shanghai export container comprehensive freight index is3097.63points, down from the previous period5.6%.

It is worth noting that the freight rates in the basic port markets of Shanghai Port exports to the West and East United States are(Ocean freight and ocean freight surcharges)respectively5955Dollar/FEUand8546Dollar/FEU, respectively decreased from the previous period9.5%,8.1%. Market freight rates for exports from Shanghai Port to European and Mediterranean basic ports(Ocean freight and ocean freight surcharges)respectively4400Dollar/TEUand4523Dollar/TEU, respectively decreased from the previous period4.6%,2.6%.

At present, shipping companies have not been able to curb the decline in freight rates. In its freight market report this week, HSBC noted: "As new ships are put into operation and shipping capacity increases, European/Mediterranean freight rates are likely to continue to weaken."

Container consulting company based in AsiaAnalysts at Linerlytica predict that container shipping rates from Asia to Europe will fall by more than 70% by June next year.

Linerlvtica noted in a market update: “While this decline is not as severe as the freight rate collapse at the end of 2022, freight futures prices are expected to continue to fall over the next 12 months and are not expected to rebound by the end of the year or repeat in 2025. The freight rate recovery after the Spring Festival this year.

Drewry World Container Index (WCI) freight rates from Asia to Northern Europe fell by 4% this week to ,429/FEU. Nonetheless, this is still a 340% increase from the same period last year, so there is still a lot of room for freight rates to fall.

A large UK-based furniture importer said"With rates dropping every week, carriers are once again testing the market and finding that shippers simply aren't willing to pay the high rates.

Another UK-based commodities importer also said: "There is definitely a glimmer of hope," as the prices he's getting from a major carrier have dropped significantly, but he added: "Still nervous about how a strike in the U.S. will affect rates.

focus on Sunny Worldwide logisticsLearn more about physical consulting. We mainly provide door-to-door services in the European and American markets and Southeast Asia.