Drewry WCI further drops 2.6% despite ILA port strike threat

30 Aug '24

2 min read

Drewry WCI further drops 2.6% despite ILA port strike threat

Pic: Adobe Stock

Insights

Drewry WCI has declined for the fifth consecutive week, dropping 2.59 per cent to $5,181 per 40ft container.
This marks an 11 per cent decrease from its peak in July 2024 and a 50 per cent decline from the September 2021 pandemic peak.
Freight rates on key routes from Shanghai to Rotterdam, Genoa, Los Angeles, and New York have also decreased.

The Drewry World Container Index (WCI) continued its downward trend for the fifth consecutive week, decreasing by 2.59 per cent to $5,181 per 40ft container in the week ending 29 August. The index has eased by 11 per cent ($757 per FEU) from its peak of $5,937 on July 18, 2024.

The latest Drewry WCI composite index of $5,181 per 40ft container is 50 per cent below the previous pandemic peak of $10,377 in September 2021, but it is 265 per cent higher than the average 2019 (pre-pandemic) rate of $1,420.

The report indicates that the average composite index for the year-to-date is $4,108 per 40ft container, which is $1,299 higher than the 10-year average rate of $2,809 (inflated by the 2020-22 COVID period).

Freight rates from Shanghai to Rotterdam and Genoa decreased by 3 per cent to $7,204 and $6,611 per 40ft container, respectively. Similarly, rates from Shanghai to Los Angeles, Shanghai to New York, and New York to Rotterdam decreased by 2 per cent to $6,248, $8,591, and $743 per 40ft container, respectively.

Likewise, spot rates from Rotterdam to Shanghai and New York decreased by 1 per cent to $622 and $1,908 per 40ft container, respectively. Meanwhile, rates from Los Angeles to Shanghai remained stable.

Despite the looming threat of an ILA port strike, transpacific eastbound freight rates have seen a slight dip this week. Drewry expects East-West rates to remain stable in the coming weeks.

Fibre2Fashion News Desk (KUL)

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