Mixed signals on container freight rates as Red Sea alarm subsides

Date Added: 26 April 2024

Mixed signals on container freight rates as Red Sea alarm subsides

Davies Turner, with our comprehensive network of international container shipping services, including LCL and FCL import and export operations, notes a interesting report on the Seatrade website shows how various freight rate indices are sending mixed messages, although most of the latest indicators show a steady decline in rates as lines and shippers negotiate annual contracts on the transpacific.

The article quotes Linerlytica reporting that “the stage for a series of larger rate hikes in May” has been set by the third straight increase in the Shanghai Container Freight Index (SCFI).

Meanwhile it adds that Dynamar reports a confusing rate scene with the Ningbo Containerized Freight Index (NCFI) showing a decline since Chinese New Year.

Seatrade's article says that Drewry’s World Composite Index (WCI) is more in line with the NCFI and CCFI indices, with analyst Simon Heaney telling the magazine that the index has been on a “12-week skid”.

The article adds that Drewry and Linerlytica diverge significantly over the transpacific contract rates currently under negotiation. Linerlytica claims contracts “are settling 10-20% above last year’s levels, with the current spot rate levels pushing shippers to conclude negotiations at the higher rates,” whilst Drewry is reported to have said that its Shipper Benchmarking Club, which allows shippers to anonymously divulge contract rates, is showing a marked year-on-year decline.

The complete article can be read here:


For more information about Davies Turner’s ocean freight forwarding and logistics services, please contact ocean@daviesturner.co.uk or visit the relevant pages of this website.

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