The container shipping market appears to have reached its peak, with notable declines in rates for various trade routes. Recently, there has been a drop in pricing on the trans-Pacific routes as well as from the Far East to the Mediterranean. This trend can be attributed to overcapacity in the market, which has made it challenging for liner companies to sustain General Rate Increases (GRIs).
However, rates from the East to the Atlantic region have remained consistent over the past week. In light of the rising tensions in the Middle East and Iran’s threats to obstruct the Strait of Hormuz, the liner market may not experience significant fluctuations. Most large container ships have been avoiding the Suez Canal for some time, opting instead to navigate around the Cape of Good Hope.
Only a limited number of smaller container vessels continue to use the canal for their routes. Recent figures illustrate the changes in rates. The FBX01 index (China/East Asia to USA West Coast) closed the week at $4,516 per Forty-foot Equivalent Unit (FEU), reflecting a drop of $1,415 per FEU from the previous week.
Meanwhile, the FBX03 index (China/East Asia to USA East Coast) saw a slight uptick, ending at $7,177 per FEU, up from $7,124 per FEU. The FBX11 index (China/East Asia to North Europe) finished at $2,966 per FEU, experiencing an increase of $26. In contrast, the FBX13 index (China/East Asia to Mediterranean) rates fell to $4,360 per FEU, representing a decrease of $211 from the end of the previous week.
Overall, the container market is undergoing significant shifts as it grapples with various economic and geopolitical factors.