According to the latest report released by the Shanghai Shipping Exchange, most shipping routes are experiencing a downward trend in freight rates due to weakened demand. The latest Shanghai export container comprehensive freight rate index is 3097.63 points, a decrease of 5.6% from the previous period.
It is worth noting that the market freight rates (sea freight and sea freight surcharges) for Shanghai Port’s exports to the West and East Coast ports were $5955/FEU and $8546/FEU, respectively, a decrease of 9.5% and 8.1% compared to the previous period. The market freight rates (sea freight and sea freight surcharges) for Shanghai Port’s exports to European and Mediterranean basic ports were $4400/TEU and $4523/TEU, respectively, a decrease of 4.6% and 2.6% compared to the previous period.

At present, shipping companies have not been able to curb the decline in freight rates. In this week’s freight market report, HSBC pointed out that “as new ships are gradually put into operation and capacity increases, freight rates in Europe/Mediterranean may continue to weaken
Analysts from Asia based container consulting firm Linerlytica predict that container shipping costs from Asia to Europe will drop by over 70% by June next year.
Linerlytica pointed out in a market update: “Although the decline this time is not as severe as the sharp drop in freight rates at the end of 2022, freight futures prices are expected to continue to decline in the next 12 months, and are not expected to rebound by the end of this year, nor will they repeat the situation of freight rate rebound after this year’s Spring Festival in 2025

It is worth noting that the contract of the East Coast International Longshore Association (ILA) will expire on September 30th, and both shipping companies and shippers are closely monitoring the potential strike threat in October, which will have a huge impact on freight rates on Asia to the United States routes.
Unless there is a breakthrough in the negotiation of the ILA and USMX contracts, the spot freight rates for this trade route are expected to increase significantly.
According to data from eeSea, a maritime and supply chain information company, there are 146 ships expected to arrive at New York’s East Coast ports within three weeks, which may be affected by industrial actions.
In addition, for transatlantic trade routes from Europe to the East Coast of the United States, shippers may only have a few weeks to smoothly ship and clear their goods, otherwise their goods may be stuck in ports due to strikes.