Spot rates for containership transport to Southeast Asia are hovering at low levels amid sluggish freight movement.

The rates for the benchmark Shanghai-Singapore route were around $54 per 20-foot equivalent container unit as of late August, down more than 10% from a high reached in June.

Southeast Asia-bound containership rates remain low

Container ship CSCL Globe - Image courtesy: Kees Torn

The slowing Chinese economy is putting the brakes on freight movement in Southeast Asia. Though China is investing in infrastructure to boost the domestic economy, a consolidated-cargo forwarder said movement is slow mainly for shipments from China.

With container transport capacity expanding on international routes, cargo rates also are low for shipments from Asia to North America, as well as for routes to Europe. The lackluster market could delay an earnings recovery by shipping companies.

Source: Nikkei