Container spot rates fell by 10% as U.S. Fed’s interest rate hikes disrupted global demand

Global trade is facing the effects of the elevated US interest rates as container shipping rates fell by 70% compared to 2021, indicating weaker consumer demand and global economic opportunities.
The Shanghai Containerized Freight Index (SCFI) fell by 10.4% to 2072.04 points than the week earlier.
The Drewry World Container Index (WCI) also saw a week-on-week decline of 10% to $4,471.99 per feu, which is in the 30th week in a row and the index is now 57% lower than the same period last year.
The Freightos Baltic Daily Index (FBX) China-West Coast assessment fell by 76% in the past 6 months to $3,799 per forty-foot equivalent unit.
Shanghai to Los Angeles rates fell by 11% to $3,779 per feu last week, while rates on Shanghai to Rotterdam fell by 10% to $ 6,027 per feu.
The orders from Europe and the US fell by more than 50%, which is likely to prolong to next year.
Rising interest rates will worsen US recession risks and the stalling economy will affect demand, which will lead to a loss of trade momentum.

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