Freight rates ease on Asia-Europe routes as capacity returns

Container rates from Port Klang to Rotterdam have declined for a third consecutive month as additional vessel capacity returns to the Asia-Europe trade. The fall is welcome news for glove exporters, where freight can represent a meaningful share of a low-value, high-volume carton.

Two practical effects follow. First, the economics of flexitank latex shipments improve relative to drum shipments, because flexitanks use a full container slot and benefit more from a lower rate per unit. Second, buyers holding stock can afford to wait, which tends to shorten the forward booking window.

Schedule reliability has improved but remains uneven. Port congestion in the western Mediterranean has added three to five days to some rotations, and a few carriers have shifted calls. Exporters are advised to confirm the actual transhipment port rather than rely on the proforma routing.

The council's logistics note, circulated monthly to members, now includes indicative all-in costs for a 40-foot container to five European destinations.

The council publishes these notes for members and registered buyers. Figures quoted in market updates are industry estimates and should be verified before a contract is priced.