26.03.16WCI Increases 8% in Week 11

The Drewry World Container Index (WCI) increased 8% from the previous week to $2,123 per FEU in Week 11—a rise for two consecutive weeks—mainly due to a sharp rise in rates on the Asia–Europe and trans-Pacific routes. From a year earlier, it was down 10%. Notably, while double-digit growth was observed on the trans-Pacific route in Week 8, the Asia–Europe route recorded a double-digit increase last week.

Spot rates on the Shanghai–Rotterdam trade route increased 19% ($391) to $2,443 per FEU and on the Shanghai–Genoa trade, 10% ($276) to $3,120 per FEU. According to Drewry’s Container Capacity Insight, only five blank sailings have been announced on the Asia–Europe trade route for this week. Meanwhile, several carriers such as Mediterranean Shipping Co. (MSC) and CMA CGM have announced higher freight-all-kinds (FAK) rates effective 22 this Sunday. As carriers continue to manage capacity while implementing rate increases, Drewry expects spot rates to rise further in the coming weeks.

Spot rates from Shanghai to Los Angeles rose 4% ($101) to $2,503 per FEU, while those from Shanghai to New York picked up 3% ($103) to $3,080 per FEU. According to Drewry’s Container Capacity Insight, seven blank sailings have been announced for this week on the trans-Pacific east and west coast trade routes. Meanwhile, the ongoing Middle East conflict continues to affect global supply chains, supporting higher freight rates in the short term. Drewry thus expects spot rates on this trade to increase in the coming weeks.

On the trans-Atlantic trade, spot rates fell 2% ($22) to $932 per FEU from New York to Rotterdam and 3% ($43) to $1,527 per FEU from Rotterdam to New York.