Excessive ocean carrier profits at risk as rapid decline in spot rates prompts renegotiation of contract rates

SHIFEX, the only forwarder-driven container spot freight rate index, recorded the lowest freight rate in 24 months between Shanghai and Los Angeles. The index shows a rate of $3,500/40’, which is a drop of 80% Y-O-Y.

While the decline in rates has been slower between China and New York / New Jersey, the rates still tumbled from a high of $19,600 in Sep 2021 to $7,950 in Sep 2022 - a 59% drop Y-O-Y.