Drewry WCI falls for 15th week, major route rates slide further

The Drewry World Container Index (WCI)—a composite measure of container freight rates—continued its free fall, declining for the fifteenth consecutive week. It dropped 7.94 per cent to $1,761 per 40-foot equivalent unit (FEU) on September 25, down from $1,913 per FEU the previous week.

Shipping freight rates on major trade routes—Transpacific and Asia–Europe—are also trending downwards.

Drewry WCI dropped 7.94 per cent to $1,761 per FEU on September 25, marking its 15th consecutive weekly decline.
Rates fell sharply on Shanghai–Los Angeles and Shanghai–New York routes, while Asia–Europe lanes also weakened.
Carriers are cutting capacity ahead of China’s Golden Week factory shutdowns.
Drewry forecasts further rate contractions as the supply–demand balance softens in the coming quarters.

Spot rates from Shanghai to Los Angeles fell 10 per cent to $2,311 per 40-foot container, while those from Shanghai to New York declined 8 per cent to $3,278 per 40-foot container. Despite a brief uptick in early September, the momentum from GRIs and blank sailings has now subsided, resulting in lower rates. Freight rates for Rotterdam–Shanghai gained 1 per cent to $461 per FEU.

Asia–Europe spot rates fell again this week, with rates down 9 per cent ($1,735 per 40-foot container) on Shanghai–Rotterdam and 7 per cent ($1,990 per 40-foot container) on Shanghai–Genoa. Container shipping charges declined 1 per cent each on Los Angeles–Shanghai to $716 per FEU and New York–Rotterdam to $842 per FEU. Rates for Rotterdam–New York fell 6 per cent to $1,819 per FEU.

Ocean carriers are reducing capacity to match slowing demand ahead of China’s Golden Week holiday, when factories will shut for eight days from October 1. As a result, freight rates are expected to continue falling next week.

Drewry’s Container Forecaster anticipates the supply–demand balance will weaken in the next few quarters, leading to further contraction in spot rates.

Fibre2Fashion News Desk (KUL)