Drewry World Container Index eases 2% after continuous 18-week rise

26 Jul '24

2 min read

Drewry World Container Index eases 2% after continuous 18-week rise

Pic: Adobe Stock

Insights

WCI decreased by 2 per cent to $5,806 per 40ft container for the week ending July 25.
Despite recent peaks, rates have dropped 44 per cent since the pandemic high in 2021 but remain 309 per cent above pre-pandemic levels.
Freight charges increased due to global unrest and Suez Canal disruptions.
Rates from various routes showed mixed changes.

The Drewry World Container Index (WCI) decreased by 2 per cent to $5,806 per 40ft container for the week ending July 25. The index had witnessed continuous increases since week 18 and has increased by 268 per cent compared with the same week last year. Container freight charges had risen due to unrest in the Middle East and other parts of the world. Charges began to rise after shipping companies had to avoid vessel movements through the Suez Canal for security reasons.

According to the latest Drewry WCI, the composite index of $5,806 per 40ft container is 44 per cent below the previous pandemic peak of $10,377 in September 2021, but it is 309 per cent more than the average 2019 (pre-pandemic) rate of $1,420.

The average composite index for the year-to-date is $3,886 per 40ft container, which is $1,108 higher than the 10-year average rate of $2,777 (inflated by the exceptional 2020-22 COVID period).

Freight rates from New York to Rotterdam increased by 4 per cent, or $26, to $736 per FEU. Likewise, rates from Rotterdam to New York and Los Angeles to Shanghai rose by 1 per cent to $1,954 and $706 per 40ft box, respectively. Conversely, rates from Shanghai to Los Angeles decreased by 5 per cent, or $354, to $6,934 per 40ft box.

Similarly, rates from Shanghai to New York dropped by 4 per cent, or $399, to $9,213 per 40ft container. Likewise, rates from Shanghai to Genoa declined by 1 per cent, or $82, to $7,645 per FEU. Meanwhile, rates from Rotterdam to Shanghai and Shanghai to Rotterdam remain stable.

Drewry believes that spot rates have peaked, but ongoing shipping disruptions will continue to support the spot rates for some time.

Fibre2Fashion News Desk (KUL)

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