According to the latest container freight index released on Thursday by Drewry, the latest composite index of $4,072 per 40ft container is 187 per cent higher than the average 2019 (pre-pandemic) rate of $1,420.
The Drewry World Container Index has surged 16 per cent this week to $4,072 per 40ft container, marking a 142 per cent increase from the same week last year.
Freight rates are rising due to rerouted shipping caused by intensified Houthi rebel attacks in the Red Sea.
Year-to-date average rates are significantly higher than pre-pandemic and 10-year averages.
Container freights are increasing once again due to intensified attacks in the Red Sea region by Houthi rebels. The upward trend has continued this week. The attacks have forced carriers to reroute ships through the African Cape of Good Hope, causing delays in shipments and increasing freight charges.
The average composite index for the year-to-date is $3,280 per 40ft container, which is $559 higher than the 10-year average rate of $2,717 (inflated by the exceptional 2020-22 COVID period).
Freight rates from Shanghai to Rotterdam increased by 20 per cent or $827 to $4,999 per 40ft container. Similarly, rates from Shanghai to Los Angeles increased by 18 per cent or $801 to $5,277 per FEU. Likewise, rates from Shanghai to Genoa climbed 15 per cent or $718 to $5,494 per 40ft box.
Correspondingly, rates from Shanghai to New York surged by 13 per cent or $746 to $6,463 per 40ft container. Additionally, Rotterdam to New York rates increased by 1 per cent or $32 to $2,241 per FEU. Conversely, rates from Rotterdam to Shanghai decreased by 1 per cent or $6 to $673. Meanwhile, rates from Los Angeles to Shanghai and New York to Rotterdam remain stable. Drewry expects the spike in spot freight rates to lessen in the coming months.
Fibre2Fashion News Desk (KUL)