Drewry’s World Container Index down by 8% last week

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The Drewry World Container Index (WCI) fell 8% to $1,761 per 40ft container, marking the 15th consecutive week of decline with rates on major trade routes—Transpacific and Asia–Europe—also trending downwards.

Spot rates from Shanghai to Los Angeles decreased 10% to $2,311 per 40ft container, while those from Shanghai to New York decreased 8% to $3,278 per 40ft container. Despite a brief uptick in early September, the momentum from GRIs and blank sailings has now subsided, which has led to the reduction in rates.

Asia–Europe spot rates fell this week again, as rates declined 9% ($1,735 per 40ft container) on Shanghai–Rotterdam and 7% ($1,990 per 40ft container) on Shanghai–Genoa. Ocean carriers are reducing capacity to align with slowing demand ahead of China’s Golden Week holiday, when factories will be shut for eight days from 1 October. As a result, freight rates are expected to continue declining in the coming week.

Drewry’s Container Forecaster expects the supply-demand balance to weaken in the next few quarters, which will cause spot rates to contract.