Spot rates rose due to attacks on ships in the Red Sea

As a result of the threat of the Yemeni Houthis to civilian shipping in the Red Sea, rates for sea transportation are rising rapidly.

The analytical company Drewry has published the first information on current rates for 2024. So, according to the report, the Drewry Global Composite Index rose more than $1,000 in the past two weeks to $2,669.91 per FEU. However, rates from Shanghai to Rotterdam have increased by 115% to $3,577 per FEU, according to Splash. 

The Shanghai Container Freight Index (SCFI), another key indicator of spot rates, rose 40%. This is only the fourth time since 2009 that spot rates have jumped more than 40% in a single week.

Analysts at Linerlytica, an Asian consultancy, expect high rates to continue throughout January and February as capacity remains tight for the next 6 weeks. Currently, 12% of the world’s container traffic is routed through South Africa, and their number will continue to grow.

The sharp increase in rates is associated with the crisis of shipping in the Red Sea. It will be recalled that in the second half of December, a large number of ships refused to transit through the Red Sea and the Suez Canal, choosing a longer route through the Cape of Good Hope.