Ocean Freight Rates Have Doubled — But Overcapacity Remains

After five consecutive rate increases, the average ocean freight rate on the eleven major East–West trade routes has nearly doubled over the past five months compared to the first quarter of the year, according to the World Container Index.

Rate Surge for 40-Foot Containers

• The average freight rate for a 40-foot container has risen from just under €700 to over €1,300.

• This rebound follows a 50% rate collapse earlier this year, with rates bottoming out in March.

• Shipping lines appear to have successfully pushed rates back up after severe losses.

Sharp Increase for 20-Foot Containers

• A 20-foot container from Shanghai to Rotterdam, booked by The Freight Hero for just €200 in March 2016, now averages around €800—a fourfold increase.

Persistent Overcapacity

Despite the surge in spot rates:

• Many shipments are still being handled under older contract rates, limiting revenue gains for carriers.

• Overcapacity in the global shipping market remains unresolved, and is expected to hold back further rate growth.

In short, while spot rates have improved, structural market imbalances continue to pose serious financial challenges for the industry.