Asia-Europe container rates fall for twelfth week

Container rates remain under pressure as weak demand and increasing traffic through the Suez Canal weigh on the market. Meanwhile, congestion at Asian ports is causing growing concern, with Sea-Intelligence estimating that delays are currently tying up 8.5% of the global containership fleet.The Drewry World Container Index fell by 1% this week, mainly due to lower rates between Asia and Europe. According to Drewry, rates from Shanghai to Genoa dropped by 3% and those to Rotterdam by 2%, marking the twelfth consecutive weekly decline. Weak demand and increasing Suez Canal transits are adding pressure to rates.On the transpacific route, Drewry reports a 1% increase in rates from Shanghai to New York, while Shanghai to Los Angeles remained unchanged. With Golden Week factory closures in China reducing cargo volumes, Drewry expects rates to fall next week.Drewry also points to increasing traffic through the Suez Canal, with transits in week 39 up 68% year on year. Carriers are targeting higher FAK rates after Golden Week, although Drewry questions whether these increases will stick.Following a review of the security situation in the Red Sea, Hapag-Lloyd and Maersk have decided to reroute four Gemini services through the region. The NE4, SE1, SE2 and IEX services will switch from the Cape of Good Hope route to the Red Sea.Congestion at Asian portsCongestion at Asian ports is becoming a more persistent problem and could continue well into 2027, writes shipping news platform Splash. Sea-Intelligence estimates that delays are currently tying up 8.5% of the global containership fleet, equivalent to around 3 million TEU of capacity. This effectively takes a substantial amount of capacity from the market and is already pushing regional freight rates to record levels.The Panama Canal is increasing its capacity as water levels improve. According to the Panama Canal Authority, the number of daily Neopanamax transits will rise to ten from 15 October, bringing the total number of daily transit slots to 33. The maximum permitted draft for Neopanamax vessels has also been increased to 14.94 metres with immediate effect.