Container shipping rates soar, impact on shippers outside China felt
Cargo rates have increased 70% on average in the last four weeks, Drewry data shows
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[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.
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