THE DREWRY World Container Index (WCI), decreased 3% to $4,429 per 40ft container, mainly due to a decrease in rates on the Transpacific trade route.
Source: Drewry World Container Index
On the Transpacific trade route, rates from Shanghai to Los Angeles fell 6% to $7,514 per 40ft container, and those from Shanghai to New York decreased 5% to $9,631 per 40ft container. According to Drewry’s Container Capacity Insight, six blank sailings have been announced for next week, up from five this week, indicating tight capacity. Meanwhile, strong US import demand is easing. According to the US National Retail Federation, US ocean import volumes are forecast to decrease 11% MoM in November, which could put further downward pressure on freight rates. Hence, Drewry expects rates to decrease next week.
Source: Drewry World Container Index
On the Asia–Europe trade route, rates from Shanghai to Rotterdam inched up 1% to $3,686 per 40ft container, and those from Shanghai to Genoa remained stable at $4,151 per 40ft container. According to Drewry’s Container Capacity Insight, four blank sailings have been announced for next week, down from eight this week, indicating more effective capacity. Carriers are announcing higher FAK rates for November; however, given available capacity and weak demand, it remains uncertain whether these increases will hold. Hence, Drewry expects rates to remain stable next week.
The East-West container freight market remains under pressure. Transits through the Suez Canal increased to 62 vessels last week—the highest weekly level this year. However, disruptions in the Strait of Hormuz continue, with only two vessels transiting the strait of Hormuz last week. Congestion at Shanghai port is easing, although Typhoon Champi could disrupt this improvement. Overall, weak demand, capacity management by carriers, potential surcharges, and ongoing US trade policy developments will continue to influence freight rates in the coming weeks.