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

Asia-Europe container freight rates are declining as carriers shift capacity back toward the Suez Canal to avoid congestion at Asian ports. According to Sogese’s September Europe Container Market Update, the Shanghai-Genoa rate dropped 10% week-on-week to $4,368 per 40ft container, while the Shanghai-Rotterdam rate fell 5% to $4,092.

Asian port congestion has reached approximately 4.3 million TEU, a level exceeding the peak seen during the pandemic. This congestion is prompting carriers like MSC, Maersk, and Hapag-Lloyd to announce partial returns to Suez Canal services. Additionally, COSCO and OOCL have expanded Red Sea services connecting Asian ports with Jeddah.

Andrea Monti, CEO of Sogese, noted that the container market is becoming increasingly fragmented by trade corridor. While Asia-Europe rates soften from mid-year highs, transpacific markets remain firmer. The return to the Suez Canal increases effective capacity on Asia-Europe routes due to shorter voyage durations, even without the introduction of new vessels.