Drewry WCI declines 4%, strike ends without major disruption

11 Oct '24

2 min read

Drewry WCI declines 4%, strike ends without major disruption

Pic: Adobe Stock

Insights

The Drewry World Container Index fell 4.01 per cent to $3,349 per 40ft container, reflecting weak global demand.
Freight rates saw declines across major routes, but the recent drop in rates slowed.
The ILA workers' strike, lasting three days, ended with minimal impact on container movement.
Drewry expects further marginal decreases in freight rates from China in the coming weeks.

The Drewry World Container Index (WCI) fell by 4.01 per cent to $3,349 per 40ft container in the week ending October 10, down from $3,489 the previous week. This benchmark for global sea freight rates has been in decline due to weak demand for freight containers. However, the rate of decline slowed during the most recent week. The strike by ILA workers did not disrupt container movement as an agreement was reached between the workers and port management, ending the strike.

The latest Drewry WCI composite index of $3,349 per 40ft container is 68 per cent below the pandemic peak of $10,377 in September 2021, but it remains 136 per cent higher than the average 2019 (pre-pandemic) rate of $1,420.

The average composite index for the year to date is $4,079 per 40ft container, which is $1,248 higher than the 10-year average rate of $2,831, inflated by the period during the COVID-19 pandemic from 2020-2022.

Freight rates from Rotterdam to Shanghai decreased by 8 per cent, or $47, to $543 per 40ft container. Similarly, rates from Shanghai to Rotterdam dropped by 6 per cent, or $224, to $3,591 per FEU. Rates from Shanghai to Los Angeles also fell by 5 per cent, or $239, to $5,019 per 40ft container.

In addition, rates from Shanghai to New York declined by 3 per cent, or $161, to $5,761 per FEU. Similarly, rates from Shanghai to Genoa dropped by 2 per cent, or $64, to $3,784 per 40ft box.

Conversely, rates from New York to Rotterdam and Rotterdam to New York increased by 1 per cent, reaching $730 and $2,083 per 40ft box, respectively. Meanwhile, rates from Los Angeles to Shanghai remained stable.

The ILA port strike, which began on October 1, 2024, ended after three days on October 4, 2024. Following the tentative deal, Drewry expects rates from China to continue decreasing marginally in the coming weeks.

Fibre2Fashion News Desk (KUL)

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