News
The Drewry World Container Index (WCI) fell 8% from the previous week to $1,761 per FEU in Week 39, marking the 15th consecutive week of decline with rates on major trade routes—trans-Pacific and Asia–Europe—also trending downwards.
Spot rates from Shanghai to Los Angeles decreased 10% ($250) to $2,311 per FEU, while those from Shanghai to New York fell 8% ($293) to $3,278 per FEU. Despite a brief uptick in early September, the momentum from general rate increases (GRIs) and blank sailings has now subsided, which has led to the reduction in rates.
Asia–Europe spot rates fell last week again, declining 9% ($175) to $1,735 per FEU from Shanghai to Rotterdam and 7% ($141) to $1,990 per FEU from Shanghai to Genoa. Ocean carriers are reducing capacity to align with slowing demand ahead of China’s Golden Week holiday. As a result, freight rates are expected to continue declining in the coming week.
On the trans-Atlantic trade, rates waned 1% ($5) to $842 per FEU from New York to Rotterdam and 6% ($107) to $1,819 per FEU from Rotterdam to New York.
Drewry’s Container Forecaster expects the supply-demand balance to weaken in the next few quarters, which will cause spot rates to contract.
