Ultra-Competitive Freight Market Emerges for China’s Export

A parallel freight market is emerging for exports from China that undercuts the lowest container spot rates.

Asia-North Europe ocean carriers are proactively quoting small- and medium-volume shippers ‘special’ FAK rates below $1,000 per 40ft from China to the UK, as they scramble to fill their ships in the dismal market that has followed the Chinese New Year holiday.

A UK-based NVOCC contact told The Loadstar the base rate with the carrier would probably be around $1,000. Adding that the way things are going, they might even be able to achieve lower rates than that, as the carriers are desperate.

Nevertheless, the NVOCC contact also said that these indices are only as accurate as the information they are given, and some of this data is obviously being held back, and that spot rate indicators are an average and therefore do not necessarily reflect the lowest rates.

According to Vespucci Maritime CEO Lars Jensen, the immediate outlook for carriers is more of the same, with new rate wars looming across tradelanes.

Wackett, M (The Loadstar).(2023).” Ultra-Competitive Freight Market Emerges for China’s Export”. qCaptain