Drewry WCI falls 1.2%, but disruptions keep rates high

02 Aug '24

2 min read

Drewry WCI falls 1.2%, but disruptions keep rates high

Pic: Adobe Stock

Insights

Drewry WCI fell by 1.2 per cent to $5,736 per 40ft container, 45 per cent below its pandemic peak but still 304 per cent higher than pre-pandemic rates.
Year-to-date, the average composite index is $3,946, inflated by 2020-22 COVID period.
Freight rates dropped on major routes like Shanghai to Los Angeles but increased slightly from New York to Rotterdam.

The Drewry World Container Index (WCI) decreased by 1.2 per cent to $5,736 per 40ft container for the week ending August 1, following 18 consecutive weeks of increases. The index is now 45 per cent below its pandemic peak of $10,377 in September 2021 but remains 304 per cent higher than the pre-pandemic 2019 average of $1,420.

The latest Drewry WCI report shows that the year-to-date average composite index stands at $3,946 per 40ft container, which is $1,161 above the 10-year average rate of $2,785. This 10-year average was notably inflated by the conditions during COVID.

Freight rates from Shanghai to Los Angeles dropped by 3 per cent, or $194, to $6,740 per 40ft container. Similarly, spot rates from Shanghai to Rotterdam and New York fell by 1 per cent, to $8,200 and $9,166 per 40ft container, respectively.

In contrast, rates from New York to Rotterdam increased by 4 per cent, or $32, to $768 per FEU. Rates remained stable on several routes: Rotterdam to Shanghai at $626 per FEU, Shanghai to Genoa at $7,610 per FEU, Los Angeles to Shanghai at $707 per FEU, and Rotterdam to New York at $1,945 per FEU.

Drewry believes that spot rates have peaked, though ongoing shipping disruptions will likely maintain a floor under these rates for some time. Container freight charges had risen due to unrest in the Middle East and other global regions. The rates spiked after shipping companies began avoiding the Suez Canal for security reasons. More recently, demand surged from China as shippers rushed to meet US shipment deadlines, further driving up rates.

Fibre2Fashion News Desk (KUL)

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