Drewry WCI increase continues; container freight rises 4% this week

According to the latest container freight index released on Thursday by Drewry, the latest Drewry WCI composite index of $4,226 per 40ft container is 198 per cent higher than the average 2019 (pre-pandemic) rate of $1,420.

The average composite index for the year-to-date is $3,323 per 40ft container, which is $598 higher than the 10-year average rate of $2,725 (which was inflated by the exceptional 2020-22 COVID period).

Freight rates from Shanghai to New York increased by 6 per cent or $372 to $6,835 per 40ft container. Likewise, rates from Shanghai to Rotterdam swelled by 5 per cent or $271 to $5,270 per FEU. Similarly, rates from Shanghai to Genoa rose by 4 per cent or $199 to $5,693 per 40ft box. Additionally, rates from Shanghai to Los Angeles increased by 2 per cent or $113 to $5,390 per FEU. Rates from Rotterdam to Shanghai inched up by 1 per cent or $4 to $677 per 40ft box. Conversely, rates from Rotterdam to New York decreased by 1 per cent or $19 to $2,222 per 40ft container. Meanwhile, rates from Los Angeles to Shanghai and New York to Rotterdam remain stable.

Container freight rates were fuelled after intensified attacks in the Red Sea region by Houthi rebels a few weeks ago. The upward trend has continued this week. The attacks forced carriers to reroute ships through the African Cape of Good Hope, causing delays in shipments and increasing freight charges.

Drewry expects freight rates ex-China to continue rising next week due to the onset of the early peak season.

ALCHEMPro News Desk (KUL)