Shipping Companies Cut Services as Freight Rates Plunge

International container shipping rates continue plunging amid weakening demand, prompting shipping companies to slash services.

The Shanghai Containerized Freight Index published by the Shanghai Shipping Exchange, the world’s most-used benchmark for sea freight rates, fell Friday to a reading of 1,814, down nearly 70% from the beginning of this year.

The cost to ship a 40-foot container from Shanghai to the West Coast of North America dropped the most — 80% — from a February high of $8,117 to the current $2,097. Rates from Shanghai to Europe plummeted nearly 70% from $7,797 in January to $2,581 currently.