Fashion
Drewry WCI continues to fall; rates slide on key trade routes
After two weeks of moving in opposite directions, the major trade routes, Transpacific and Asia–Europe, are now aligned on a downward trajectory, though each is moving at a different pace.
Drewry World Container Index fell 6.4 per cent to $1,913 per FEU on September 18, marking its 14th straight weekly drop.
Transpacific and Asia–Europe spot rates declined as momentum from GRIs and blank sailings faded.
With carriers struggling to absorb new capacity and soft demand, Drewry expects further rate declines ahead of China’s Golden Week and warns of additional volatility in early 2025.
Transpacific spot rates have resumed their decline, slipping back to levels last seen at the beginning of September. Rates from Shanghai to Los Angeles fell 4 per cent to $2,561 per 40ft container, while rates from Shanghai to New York dropped 5 per cent to $3,571 per 40ft container. Despite a brief uptick, the momentum from General Rate Increases (GRIs) and blank sailings has faded, leading to the latest decline.
Asia–Europe spot rates also continued to fall this week, with Shanghai–Rotterdam rates down 11 per cent to $1,910 per FEU and Shanghai–Genoa rates down 9 per cent to $2,131 per FEU. This drop reflects carriers’ struggle to balance rising capacity—driven by new vessels entering service—with softening demand. With more blank sailings planned ahead of China’s Golden Week holidays, beginning on October 1, Drewry expects rates to continue falling in the coming weeks.
Drewry’s Container Forecaster projects that the supply-demand balance will weaken again in the second week of 2025, likely causing further spot rate contraction. The extent and timing of rate volatility will depend on President Donald Trump’s future tariff decisions and on capacity changes linked to potential US penalties on Chinese ships, both of which remain uncertain.
Fibre2Fashion News Desk (KUL)