Freight Costs from China to Europe Rise Due to Red Sea Turmoil

Hamburg, Germany, January 12, 2024-Freight rates for containers from China to Europe are up thee times due to turmoil in the Red Sea, reports Container xChange.

“Customers of the Container xChange platform affirm that the shipping lines have raised their slot prices significantly. A Container xChange customer based and operating in Singapore shared on the Red Sea matter that, ‘Average rate on China-Europe quoted this week is about US$5400/40’HC, up from US$1,500 (3X) just the week before.’

“Latin America (East and West), Japan & Korea and Europe Mediterranean witness highest increase in Container trading spot rates over the last 30 days.

“A container manufacturer from china shares with Container xChange, “Shipping companies are demanding more containers now as they avoid red sea. Therefore, Shipping companies and leasing companies have placed more than 750,000 TEU ISO container orders out of China in the last two months.”

“There is a growing demand for containers in Asia as shippers and forwarders foresee cargo demand in the coming weeks, to fulfil orders ahead of the Chinese New Year. Container trading spot rates are increasing at a staggering rate as observed on the Container xChange platform. Spot rates in Shanghai, Hamburg, Boston. 

“The container price sentiment Index (xCPSI) reached an all-time high as container price anticipation peaks. The index value peaked at 71 in January from an average of 27 in December, mirroring the significant impact Red Sea attacks have had on prices so far.”