Asia–Europe spot rates fall for 12th straight week as carriers plan late-October FAK increases
Drewry's WCI fell 1% to $4,434 per 40ft on 1 October, with Shanghai–Rotterdam and Shanghai–Genoa down again. Carriers plan higher FAK rates after Golden Week, but whether they will stick is unclear.
- Drewry's World Container Index (WCI) slipped 1% to $4,434 per 40ft container in its 1 October assessment, pulled down by Asia–Europe lanes.
- Shanghai–Rotterdam fell 2% to $3,399 and Shanghai–Genoa fell 3% to $3,702 per 40ft; Asia–Europe rates have now fallen for 12 weeks in a row.
- Carriers plan higher FAK rates for the second half of October, but Drewry says it is unclear whether they will stick.
Spot rates from Asia to Europe kept falling going into China's Golden Week. Drewry's composite WCI fell 1% to $4,434 per 40ft container in the week to Thursday 1 October. That was the index's second weekly drop in a row, and the Asia–Europe trade was the main reason for it.
Twelfth straight weekly decline on Asia–Europe
Drewry put Shanghai–Rotterdam at $3,399 per 40ft container, down 2% on the week. Shanghai–Genoa fell 3% to $3,702. Drewry has now recorded 12 straight weekly declines on the trade and links the trend to weak demand. With factories across China closed for Golden Week, Drewry expects rates to fall again next week.
Xeneta's data from the same day points the same way. Its average Far East–North Europe spot rate on 1 October was $3,726 per FEU, down 2.1% in a week. Far East–Mediterranean fell 4.6% to $4,105 per FEU. Xeneta says spot rates on both trades peaked earlier in the year and have been falling since early July. Drewry and Xeneta measure rates differently, so their figures are not directly comparable.
| Lane (40ft) | Source, date | Rate (USD) | Weekly change |
|---|---|---|---|
| Shanghai–Rotterdam | Drewry WCI, 1 Oct | 3,399 | -2% |
| Shanghai–Genoa | Drewry WCI, 1 Oct | 3,702 | -3% |
| Far East–North Europe | Xeneta, 1 Oct | 3,726 | -2.1% |
| Far East–Mediterranean | Xeneta, 1 Oct | 4,105 | -4.6% |
Carriers plan FAK increases after the holiday
According to Drewry, carriers are trying to stop the slide by raising FAK rates for the second half of October, after Golden Week. Drewry says it is uncertain whether these increases will be successfully implemented. For context, Xeneta says Far East–North Europe rates are still 67.9% above its 28 February benchmark, set before the Hormuz crisis. Far East–Mediterranean is 23.3% above that level.
What this means for shippers
- Spot rates for Asia–Europe FCL are still falling. Comparing quotes before booking post-Golden Week cargo may pay off.
- Expect announced FAK increases for late October. Before planning around these rates, check whether they are holding in the index data that follows.
- Rates remain well above pre-Hormuz levels. Leave some room in landed-cost budgets for Q4.