Market update: Spot rates reach a 15-week high, but indices diverge

Spot-market rates kept rising over the past week, although the main indices do not all point in the same direction. Here are the three developments most relevant to shippers trading with Europe.

Drewry's World Container Index (WCI) rose 2% to $4,585 per 40ft container on 22 October. That is its second consecutive weekly increase and the highest level in 15 weeks. Drewry also reported only two blank sailings announced for the following week, down from six in the current week.

Xeneta's data for 23 October shows average spot rates from the Far East to North Europe at USD 3,698 per FEU, up 6.8% on the week, and to the Mediterranean at USD 4,442 per FEU, up 5.8%. Xeneta says services continue to return to the Red Sea, freeing up capacity, but demand is outweighing supply. Both lanes remain well below 1 July levels, by 33.2% and 36.7% respectively.

The Shanghai Shipping Exchange's China Containerized Freight Index (CCFI) gave a different picture for the week to 23 October: the Europe route index slipped 0.3% to 1,849.31, and the composite index fell 2.4% to 1,876.27. Separately, the Exchange has introduced seven additional container freight benchmarks and an updated contract framework. Indices use different methodologies, so it matters which one a contract references.

What this means for your cargo: Rates are rising from a lower base, and the direction can differ depending on the index, so last week's quote may already be out of date. Where possible, book early, ask for quotes with a clear validity period, and confirm cut-offs and vessel schedules with your forwarder. If you have index-linked contracts, check which index applies.

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