News
Drewry’s World Container Index (WCI) remained stable, dropping just 1% to $2,104 per FEU in Week 36, but was down 56% from a year earlier.
After 11 weeks of decline, the WCI stabilized last week as a result of opposing trends in different trade lanes. While a significant increase in trans-Pacific rates pushed the index up, a major drop in Asia-Europe rates counterbalanced the surge, resulting in a steady index overall.
Spot rates from Shanghai to Los Angeles increased 8% ($190) to $2,522 per FEU, while those from Shanghai to New York jumped 12% ($386) to $3,677 per FEU. Despite the upcoming Golden Week holiday in China, it is unlikely that the rates will be sustainable without further cuts to shipping capacity. Hence, Drewry expects rates to remain stable in the upcoming weeks.
Asia-Europe spot rates fell last week, as those from Shanghai to Rotterdam reduced 10% ($276) to $2,385 per FEU and from Shanghai to Genoa, 7% ($189) to $2,653 per FEU. Despite healthy demand and port delays in Europe, a growing surplus of vessel capacity has been pushing down spot rates on the trade lane. Therefore, Drewry predicts a further decline in spot rates in the coming weeks.
