Spot rate hikes & breaches ignite fury among European shippers

Posted on June 3, 2024   |  

North European shippers and freight forwarders are expressing significant frustration over the rapid increase in spot freight rates in recent weeks.

Drewry’s WCI Shanghai-Rotterdam rates surged by 20% week-on-week, reaching $4,999 per 40ft, with actual spot rates ranging from $6,000 to $7,500 and potentially reaching $10,000.

A tight vessel supply and high demand on major trade routes are causing a severe shortage of containers at key export hubs in Asia.

Customers are infuriated as carriers prioritize higher-paying spot cargo over contracted volumes.

Spot rates on the WCI Shanghai-Genoa leg increased by 15% to $5,494 per 40ft, with similar rises across other routes: transpacific rates on Drewry’s WCI up 18%, Xeneta’s XSI up 16.5%, and Freightos’ FBX Asia-US west coast up 12%.

Port congestion in Asia is worsening, with vessels waiting up to three days for berthing in Shanghai and Singapore, and significant backlogs in Qingdao and Ningbo.

Secondary trade routes are also seeing rate hikes, described as "ticking time bombs" due to the same factors driving up prices.