Container Spot Rates Drop to 2023 Lows Amid Post-Lunar New Year Slowdown

The container sector is experiencing its usual post-Lunar New Year lull, typically lasting until April or May. Despite the downturn, the sector remains one of the more profitable in shipping.

The Drewry World Container Index dropped 5% per FEU, though it remains 118% higher than the pre-pandemic 2019. Similarly, the Shanghai Containerized Freight Index (SCFI) fell 6% week-on-week to 1,758.82 points, reaching levels last seen in 2023 before the Red Sea shipping crisis pushed rates up. Linerlytica analysts note that cargo volumes remain weak, despite a record-setting rush in January. Carriers now face an uphill battle to stabilize rates as demand remains subdued in the coming months.