Asia-Europe spot freight rates temporarily rose after 15 weeks of decline as carriers implemented general rate increases (GRIs) on ex-Asia shipments. Drewry’s World Container Index (WCI) showed an 8% rate jump on Shanghai-Rotterdam routes and an 11% rise on Shanghai-Genoa routes.

Despite this uptick, industry experts are seeing the increases as temporary. Market feedback suggests low demand for the next three months due to sufficient stock levels. The recent tightness in bookings stems from blank sailings, rather than increased demand, a European forwarder noted. In October, shipping lines canceled 21 out of 138 scheduled sailings on Asia-Europe routes, cutting capacity by 300,000 TEUs, according to data from eeSea.

Another increase on Asia-Europe shipments is planned for 15 November, but the amount differs widely between the carriers. Xeneta’s chief analyst, Peter Sand, said the rate hikes are tactical. He explained that carriers are looking to strengthen their position for 2025 contract negotiations. He said shippers should monitor the market closely and that the developments could impact long-term contract rates starting in January.

Source: The Loadstar