THE DREWRY World Container Index (WCI) fell 1% to $1,919 per 40ft container for the sixth consecutive week due to a drop in rates on the Transpacific and Asia–Europe trade routes.
Source: Drewry World Container Index
Spot rates from Shanghai to New York decreased 1% to $2,782, while those on Shanghai to Los Angeles remained stable at $2,219 per 40ft container. To maintain the supply-demand balance, carriers are managing capacity by announcing blank sailings. According to Drewry’s Container Capacity Insight, 31 blank sailings have been announced for the next week on the Transpacific East and West Coasts trade lane, much higher than in previous years. Hence, Drewry expects spot rates on this trade to continue to soften in the coming weeks.
Source: Drewry World Container Index
Spot rates on Asia–Europe trade routes continued to decline, with rates on Shanghai–Rotterdam falling 1% to $2,109 per 40ft container and those on Shanghai–Genoa dropping 2% to $2,895. According to Container Capacity Insight, carriers have announced 8 blank sailings on the Asia–Europe/Med trade route for next week due to the volatile market and ongoing factory closure due to CNY. Drewry expects spot rates on this trade to decline slightly in the coming weeks.
Container spot rates are falling sharply, which indicates that the market is weak, contrary to the general expectation of rising demand and increasing spot rates before the CNY. This year, rates peaked earlier than usual, and if the normal seasonal pattern continues, they might decrease further.