THE DREWRY World Container Index (WCI), rose 3% to $4,485 per 40ft container, mainly due to an increase in rates on the Asia-Europe trade route.
Source: Drewry World Container Index
Source: Drewry World Container Index
On the Asia–Europe trade route, rates from Shanghai to Rotterdam increased 6% to $3,522 per 40ft container, and those from Shanghai to Genoa grew 7% to $3,945 per 40ft container. According to Drewry’s Container Capacity Insight, two blank sailings have been announced for next week, down from six this week, indicating more effective capacity. After 13 consecutive weeks of decline, rates on the Asia-Europe trade route increased this week. However, fewer blank sailings and the resumption of Suez Canal transits are adding further capacity to the route. Meanwhile, carriers are attempting to push rates through higher FAK, ranging from $4,500–$4,800 per 40ft container on the Asia–Europe trade route, effective 19 October. However, successful implementation of these FAKs remains uncertain amid increased capacity. Hence, Drewry expects rates to remain stable next week.
The East–West container freight market rebounded post-Golden Week as cargo flows resumed. Strong US import demand continues to support Transpacific rates, while the return of vessels to the Suez Canal is adding capacity on the Asia–Europe trade route. Carriers are attempting to push up rates through higher FAK rates on Asia–Europe, but successful implementation remains uncertain amid increased capacity. Shippers should expect volatility in rates as post-holiday demand recovery, capacity adjustments and geopolitical uncertainty influence market conditions.