Spot rates for Chinese export cargo to Northern Europe continue to drop significantly. Following the Golden Week Holidays in China during the first week of October, these spot rates are now 9.3% lower than two weeks ago.

The last quarter of the year is traditionally the weakest season for cargo demand in liner shipping. However, this year, cargo volumes from China have remained surprisingly strong for this time of year, with the decline in the Shanghai Containerized Freight Index (SCFI) limited to just 3.4% over the past two weeks.

Pressure on rates between Shanghai and Northern Europe remains high. On a spot basis, the average cost for transport on this route is now around 4,080 dollars per 40-foot container, which is 9.3% less than at the end of September and almost 60% lower since mid-July.

California
In other major trade lanes, the impact on shipping lines during the Chinese holiday period was limited. Between Shanghai and California, the current rate is 4,730 dollars per 40-foot equivalent unit (FEU), down 2.5% over the last two weeks, while the rate to New York stands at 5,554 dollars per FEU, a decrease of 1.3%.

The overall trend for Chinese spot rates remains negative. The only exception was a slight spot rate increase of 2.5% between Shanghai and Dubai, but even there, the rate is still just under 1,000 dollars per TEU.

Source: NT/Flows