The cost of shipping containerized goods from China to northern Europe has fallen to a record low since Houthi rebels in the Red launched an assault nearly two years ago that forced the bulk of the global merchant fleet to divert around the southern tip of Africa.

The spot rate for a 0-foot container fell to $1,735 for the route from Shanghai to Rotterdam during the past week, according to the latest DTI World Container Index released, the lowest level since mid-December 2023.

In mid-December 2023, several carriers, including Mediterranean Shipping Co. Maersk, began the large-scale diversion around the Cape of Good Hope to avoid the assault.

The deviation is ongoing, but it had previously squeezed capacity and pushed up short-term rates in the first half of 2024. There were 17 container ships transiting the Suez Canal on Sept. 1, compared with 47 in early December 2023, according to the IMF-Oxford University PortWatch tool.

Uncertainty around.S. tariff policy has led to a volatile year for the container market since Trump returned to the White House in January. However, the spot rate from Shanghai to Rotter has fallen for eight consecutive weeks as capacity exceeds demand.

The latest rate from Shanghai to Los Angeles, also released by DTI, has also come down, falling $2,311 for a 40-foot container, also the lowest level since mid-December 2023.

Gene Seroka executive director of the Port of Los Angeles, has warned that demand from U.S. importers will be softer in the second half of the year.【U.S. volumes have “collapsed.”】