Drewry WCI drops on Red Sea volatility, Chinese New Year onset

The decline in the index was mainly attributed to falling rates on the Transpacific and Asia–Europe trade routes.

Spot rates from Shanghai to New York fell 10 per cent to $3,568 per 40-foot container, while rates from Shanghai to Los Angeles declined 7 per cent to $2,909 per 40-foot container. Carriers were unable to sustain higher rates due to weak demand, despite upward pressure on spot rates linked to expected Chinese New Year factory shutdowns in mid-February.

Spot rates from Shanghai to Rotterdam decreased 3 per cent to $2,763 per 40-foot container, while rates from Shanghai to Genoa slipped 1 per cent to $3,839 per 40-foot container.

Rates from New York to Rotterdam increased 2 per cent to $989 per FEU, while Rotterdam to New York rates declined 3 per cent to $1,634 per FEU. Freight rates on the Rotterdam–Shanghai route rose 2 per cent to $513, while Los Angeles–Shanghai rates increased 2 per cent to $732 per 40-foot container.

Ocean carriers have put their plans to resume transits via the Red Sea on hold amid escalating protests in Iran and the risk of direct US military intervention, which continues to drive volatility in the region.

ALCHEMPro News Desk (KUL)