Drewry container index continues to rise, up 10% this week

05 Jul '24

2 min read

Drewry container index continues to rise, up 10% this week

Pic: Adobe Stock

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The Drewry World Container Index (WCI) rose by 10 per cent to $5,868 per 40ft container for the week ending July 4, a 298 per cent increase from last year.
Despite being 43 per cent below the 2021 peak, it is 313 per cent higher than the 2019 average.
Freight rates from Shanghai to various destinations surged, while some routes saw decreases.

The Drewry World Container Index (WCI) increased by a further 10 per cent to $5,868 per 40-feet container for the week ending July 4. This represents a 298 per cent increase compared to the same week last year. Container freight charges continue to rise due to unrest in the Middle East. Charges began to rise after shipping companies had to avoid vessel movements through the Suez Canal for security reasons.

According to the latest container freight index released on Thursday by Drewry, the latest composite index of $5,868 per 40ft container is 43 per cent below the pandemic peak of $10,377 in September 2021, but it is 313 per cent higher than the average 2019 (pre-pandemic) rate of $1,420.

The average composite index for the year-to-date is $3,664 per 40ft container, which is $909 higher than the 10-year average rate of $2,756 (inflated due to the 2020-22 COVID period).

Freight rates from Shanghai to New York increased by 17 per cent, or $1,331, to $9,158 per 40ft container. Similarly, rates from Shanghai to Los Angeles rose by 12 per cent, or $799, to $7,472 per 40ft box. Likewise, rates from Shanghai to Rotterdam surged by 10 per cent, or $734, to $8,056 per FEU. Additionally, rates from Shanghai to Genoa spiked by 7 per cent, or $471, to $7,573 per 40ft container.

Rates from New York to Rotterdam swelled by 2 per cent, or $16, to $656 per FEU. Conversely, rates from Rotterdam to Shanghai decreased by 5 per cent, or $33, to $643 per 40ft box. Rates from Rotterdam to New York dropped by 3 per cent, or $67, to $1,977 per FEU. Meanwhile, rates from Los Angeles to Shanghai remain stable.

Drewry expects a minor increase in freight rates out of China as Asian ports face congestion issues.

Fibre2Fashion News Desk (KUL)

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