THE DREWRY World Container Index (WCI), decreased 2% to $4,305 per 40ft container this week, driven by declining rates on the Transpacific and Asia–Europe/Med trade routes. The Transpacific trade route followed the downward trend seen on the Asia–Europe/Med trade route over the past three weeks.
Source: Drewry World Container Index
Source: Drewry World Container Index
On the Asia-Europe/Med trade route, rates from Shanghai to Rotterdam decreased 3% to $3,504 per 40ft container, while rates from Shanghai to Genoa remained stable at $4,168 per 40ft container. Carriers are continuing to manage capacity through blank sailings. According to Drewry’s Container Capacity Insight, eight blank sailings are announced for next week, higher than five this week. At the same time, carriers have announced higher FAKs and PSS on Asia–Europe/Med Trade routes effective second half of November. These capacity adjustments and surcharge increases could provide some support to freight rates; Drewry expects rates to increase slightly in the coming weeks.
The East-West container shipping market remains uncertain, with freight rates declining amid weak demand. In response, carriers are adjusting capacity and announcing surcharges to support rates in the coming weeks. Ahead of the Lunar New Year, pre-holiday shipments may temporarily support demand. Meanwhile, 53 vessels transited the Suez Canal last week, while only one vessel transited the Strait of Hormuz. Geopolitical uncertainty and ongoing labour negotiations at the ports of Los Angeles and Long Beach remain potential risks to global container shipping. Shippers should expect continued rate volatility in the coming weeks.