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Shipping rates to US and EU continue to fall even as Chinese factories reopen

Posted on October 16, 2023 |

Shipping rates to Europe and the U.S. continue to decrease, even as Chinese workers return to work after the Golden Week.

The Shanghai Container Freight Index (SCFI) temporarily halted rate updates during China's production shutdown but now indicates rates are $200/FEU lower on the headhaul Pacific route compared to the last value.

Prices for shipping to Europe, previously at $1,166/FEU, have now dropped to below $800/FEU.

Carriers plan rate increases on both major routes, with a $1,000/FEU increase on October 15 and November 1 for the Pacific and up to $1,800/FEU on European routes.

Currently, 65 ships, totaling 243,097 TEU, are inactive. Although 23 ships, totaling 151,916 TEU, were delivered in the last month, this offsets the non-operating fleet. Ten scrapped vessels account for 16,200 TEU.

Diminished demand has led to a surplus of available ships for charter, raising concerns about market expectations for the fourth quarter of 2023.

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