Asia-North Europe shipping rates drop 9%, yet long-term contracts surge

Posted on September 23, 2024   |  

Spot container freight rates on key east-west routes continued to decrease this week, but the rate of decline has slowed, with all drops in single digits.

The biggest drop occurred on the Asia-North Europe route, where the Shanghai-Rotterdam rate fell by 9% to $4,682 per 40ft container, 300% higher than last year.

Asia-Europe short-term rates declined by 15% this week, bringing the price to $5,424 per 40ft.

Between July 1 and September 18, short-term rates for the Far East to North Europe route fell by 29%, from $8,130 to $5,755 per 40ft container.

Long-term contract rates for some routes increased, with Vietnam-Rotterdam rates rising from around $2,000 per 40ft in July to over $3,600 today.

In December last year, Vietnam-Rotterdam long-term rates were about $1,300 per 40ft, reflecting higher market volatility than usual.

While spot rates have been falling, long-term contracts have increased significantly, particularly on specific trade routes like Vietnam-Rotterdam.