Container spot freight rates showed little change in November, as carriers’ mid-November rate hikes appear to have fallen short.
The Drewry World Container Index (WCI) recorded only a slight 2% increase on the Shanghai-Rotterdam route, ending the week at $4,043 per 40ft container. Meanwhile, rates for Shanghai-Genoa remained static at $4,400.
Asia-Europe carriers and shippers have now begun negotiations for 2025 contracts. Spot rates, often used as benchmarks for contract pricing, are a key focus for carriers seeking higher revenue. However, the lack of significant rate movement in November will likely be a disappointment for those hoping to influence contract discussions.
The lack of significant rate movement in November will be a disappointment for those hoping to influence contract discussions.
Current WCI rates for Asia-North Europe are well below the mid-November targets set by some carriers. For instance, MSC aimed for $5,500 per 40ft on Asia-North Europe shipments, while CMA CGM sought $5,700 per 40ft for Asia-West Mediterranean routes.
Despite these challenges, carriers are preparing for another push. MSC and Hapag-Lloyd have announced fresh Freight All Kinds (FAK) rates for 1 December. MSC plans to charge $6,300 per 40ft from the Far East to North Europe, while Hapag-Lloyd is targeting $6,100 for North Europe and $6,400 for West Mediterranean ports.
During Hapag-Lloyd’s recent Q3 earnings call, CEO Rolf Habben Jansen noted that the few 2025 contracts finalized so far are priced higher than their 2024 counterparts. He highlighted that spot rates are significantly stronger compared to the same period last year, though contract finalization timelines appear to be slipping.
“It is still very early for the Far East contracting season. Negotiations have started in many cases, but most of those contracts will only be closed in the first quarter [of next year].”
As the industry watches these developments, all eyes will be on the potential impact of December’s rate adjustments on ongoing contract negotiations.
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