Container shipping rates soar, impact on shippers outside China felt

[SINGAPORE] Sea cargo rates have surged, with those for the voyage from Shanghai to the United States particularly steep, fuelled by pent-up demand and front-loading as shippers rush to beat the US-China trade truce expiry.

However, the uncertainty on where the market heads from here has been flagged by analysts, given that new capacity has been added to the US-bound trade lanes, and whether the volume surge will sustain after the 90-day window.

The composite Drewry’s World Container Index, which tracks weighted average spot rates on eight east-west routes, rose 41 per cent to US$3,527 per 40-foot container this week, based on its latest reading published on Thursday (Jun 5) night.