Container market faces steep Q3 rate drops

Graph: Bimco

Container spot rates dropped by 43% in Q3/2024, marking the worst third-quarter performance in a non-Covid year since the Shanghai Containerised Freight Index (SCFI) was introduced in 2009, according to Bimco’s chief shipping analyst, Niels Rasmussen.

The SCFI, which tracks spot container rates from Shanghai, reflects market supply and demand, with significant declines on key trade routes to Europe, the Mediterranean, and both coasts of the US.

While spot rates to Europe and the Mediterranean have plummeted by nearly 55%, average rates have dropped by 20%. In contrast, time charter rates have remained stable due to limited ship availability and demand related to Red Sea rerouting.

Although the SCFI and China Containerised Freight Index (CCFI) are still higher than last year, concerns persist over long-term rate development, particularly as rerouted ships could return, adding to the fleet supply. Further disruptions, such as the US port strike, could provide short-term relief to rates. (pb)

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