The latest Drewry WCI composite index of $4,168 per 40ft container is 60 per cent below the pandemic peak of $10,377 in September 2021, but it remains 193 per cent higher than the pre-pandemic average rate of $1,420 in 2019.

The average composite index for the year-to-date is $4,128 per 40ft container, which is $1,310 higher than the 10-year average rate of $2,818, inflated by the exceptional 2020-22 Covid period.

Freight rates from Shanghai to New York plunged by 21 per cent, or $1,790, to $6,661 per 40ft container. Similarly, rates from Shanghai to Rotterdam contracted by 17 per cent, or $1,067, to $5,152 per FEU. Likewise, rates from Shanghai to Genoa declined by 10 per cent, or $586, to $5,256 per 40ft container.

Spot rates from Rotterdam to New York also dropped by 9 per cent, or $201, to $2,011 per 40ft container. Rates from Shanghai to Los Angeles fell by 7 per cent, or $403, to $5,627 per 40ft container. Additionally, rates from New York to Rotterdam eased by 4 per cent, or $28, to $704 per 40ft container, while rates from Rotterdam to Shanghai shrank by 1 per cent, or $6, to $606 per FEU.

Conversely, spot rates from Los Angeles to Shanghai increased by 1 per cent, or $4, to $718 per 40ft container.

Shippers are shifting their cargo from the US East Coast to the West Coast to avoid the planned ILA strike in October, which has resulted in a significant 21 per cent decline in East Coast spot rates. Due to weak demand, Drewry expects East-West rates to decrease further in the coming weeks.

Fibre2Fashion News Desk (KUL)