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Home Ports and Terminals

Port congestion ties up ship capacity, but not enough to stop Asia-Europe rate drop

Editor by Editor
3 years ago
Reading Time: 1 min read
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Port congestion issues are easing worldwide, freeing up #ship capacity which until recently was taken up due to long waiting times at anchorages.

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This has added extra pressure on spot ocean freight rates ex China just as #cargo demand has significantly weakened.

The Shanghai Containerized Freight Index (SCFI), which reflects the evolution of fronthaul spot freight rates from China, dropped 54.2% during Q3.

Rates from Shanghai to California nosedived by 67.3% last quarter. US imports from Asia were reportedly down 11% in September, but the congestion factor also played a role, with the number of ships waiting to enter Los Angeles or Long Beach down to fewer than 10 ships, compared to the historical high of 109 vessels queuing up for the San Pedro Bay twin ports in January 2022.

It is remarkable that Shanghai – North Europe spot freight rates also decreased by 48.5% in Q3 despite the fact that port congestion problems in Europe remain far from being resolved.

Source: Alphaliner

Tags: Alphalinercontainer ratesOcean Freight Ratesport congestion
Editor

Editor

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