FREIGHT RATES between China and Australia are on their way to halving in a matter of a few weeks, with the Shanghai Containerised Freight Index diving alarmingly since a turn-of-the year spike.
In the first week of January 2025 spot rates from Shanghai to Sydney were being quoted at USD 4220/FEU, and the following week at USD 4290/FEU. Both were higher than any week in December 2024.
But Week 3 slipped to USD 3676/FEU, Week 4 to USD 2956/FEU, before holding steady during Weeks 5 and 6 to USD 2738/FEU. This week the SCFI is further down, to USD 2170/FEU, or not much more than USD 1000/TEU.
Carriers ran only a modest blanking program for Lunar New Year but expectations are now for more schedule slides or voyage withdrawals as lines attempt to meet the market and stem the falls. Already, rate restoration notices are beginning to appear (see accompanying story) but underlying demand remains softer than anticipated, sources say.
“There are lots of port omissions/swaps happening, “one shipper told DCN. “Schedules are generally out of sync, thanks to weather here and in Asia, and there are increasing reports of congestion happening throughout the region including Singapore.
“As a result (export) container release is becoming more difficult to get, on time for packing, so we’re having to push bookings back.
“I am guessing most lines are underperforming on exports – North Asian trades are more difficult than S E Asia – volumes are just not there.”
Interestingly, tables from Xeneta show South East Asia-Australia rates holding up better than China and environs.
In Week 1 2025 the average was USD 3281/FEU and although that’s been declining steadily since, this week it’s reported as USD 2589/FEU, some $400 higher than North Asia.
