Box rates still sinking but disruptions due to port fees could spur rebound
- SCFI Shanghai-US west coast index now down 63% vs late January peak, with rates to US east coast down 55%
- SCFI and Drewry global composites are back to levels seen in December 2023 at the onset of the Red Sea crisis
- US Trade Representative plan to institute $1m-per-call port fees could lead to congestion and push Asia-US spot rates back up
The outlook for spot rates is uncertain. On one hand, US consumer sentiment is weakening, a negative for pricing. On the other, America’s controversial plan to charge high port fees, if approved, could cause congestion at larger ports and propel rates higher
