Asia-Europe container rates fall as carriers return to Suez Canal

Asia-Europe container freight rates are declining as shipping carriers begin to reallocate capacity and return services to the Suez Canal. According to Sogese’s September Europe Container Market Update, the container market is experiencing increased fragmentation, with freight rates, cargo demand, and available capacity moving in different directions across various trade corridors.

Data from Drewry’s World Container Index shows that Shanghai-to-Genoa rates fell 10% week-on-week to $4,368 per 40ft container, while Shanghai-to-Rotterdam rates dropped 5% to $4,092. Blank sailings on the Asia-Europe route are expected to decrease from four to one next week, signaling a return of capacity to the market.

Andrea Monti, CEO of Sogese, noted that the market is becoming less global in its behavior, as carriers adjust vessel deployments to specific trade lanes rather than managing capacity uniformly. High port congestion in Asia, currently estimated at 4.3 million TEUs, and the absorption of 5% to 7% of global capacity by Cape of Good Hope diversions are key factors influencing these shifts.