Drewry WCI falls 2%, but disruptions keep transpacific rates high

The latest Drewry WCI composite index is 49 per cent below the pandemic peak of $10,377 in September 2021, but it remains 274 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 $4,077 per 40ft container, which is $1,273 higher than the 10-year average rate of $2,803, a figure inflated by the conditions during the 2020-22 COVID period.

Freight rates from Shanghai to Genoa decreased by 5 per cent, or $394, to $6,788 per 40ft container. Similarly, rates from Shanghai to Rotterdam dropped by 4 per cent, or $327, to $7,429 per FEU. Likewise, spot rates from Rotterdam to New York fell by 1 per cent, or $27, to $1,934 per 40ft container.

Conversely, rates from Shanghai to Los Angeles increased by 2 per cent, or $98, to $6,401 per 40ft container. Similarly, rates from Shanghai to New York edged up by 1 per cent, or $47, to $8,811 per FEU. Meanwhile, rates from Rotterdam to Shanghai, Los Angeles to Shanghai, and New York to Rotterdam remained stable.

The recent uptick in Transpacific Eastbound freight rates to the US West Coast and East Coast could be attributed to the looming ILA port strike on October 1 and the anticipated rush to ship goods before the strike begins. The International Longshoremen's Association (ILA) is a North American labour union representing longshore workers along the East Coast of the United States and Canada, the Gulf Coast, the Great Lakes, Puerto Rico, and inland waterways, including the West Coast.

As a result, Drewry expects rates on Transpacific trade routes to continue increasing in the coming weeks.

ALCHEMPro News Desk (KUL)