Drewry WCI further down 7.02%, weak demand on Asia to Europe routes

The latest Drewry WCI composite index of $3,691 per 40ft container is 64 per cent below the previous pandemic peak of $10,377 in September 2021, but it is 160 per cent more than the average 2019 (pre-pandemic) rate of $1,420.

The average composite index for the year-to-date is $4,113 per 40ft container, which is $1,288 higher than the 10-year average rate of $2,825 (inflated by the exceptional 2020-22 COVID period).

The fright rates from Shanghai to Genoa decreased 15 per cent or $716 to $4,212 per 40ft container. Similarly, rates from Shanghai to Rotterdam declined 11 per cent or $525 to $4,157 per feu (forty-foot-equivalent). Likewise, rates from Shanghai to New York dropped 5 per cent or $336 to $6,028 per 40ft box. Also, rates from Shanghai to Los Angeles fell 2 per cent or $90 to $5,490 per feu.

Conversely, rates from New York to Rotterdam and Rotterdam to New York increased 1 per cent to $722 and $2,067 per 40ft box, respectively. Meanwhile, rates from Rotterdam to Shanghai and Los Angeles to Shanghai remained stable.

Drewry expects a continued decline in rates for Asia-to-Europe routes due to weaker demand. Meanwhile, rates for Transatlantic and Transpacific Head haul trade routes are expected to rise, driven by potential labour strikes and the impact of China’s Golden Week holiday.

ALCHEMPro News Desk (KUL)