Drewry WCI rises for sixth consecutive week, Hormuz a concern

The Drewry World Container Index (WCI) further increased by 0.96 per cent. The index rose to $2,309 per FEU (Forty-foot Equivalent Unit) for the week ending April 9, marking the sixth consecutive weekly increase. The index stood at $2,287 per FEU in the week ending April 2. The upward trend of the index was mainly driven by rising rates on the Transpacific and Transatlantic trade routes.

Spot rates from Rotterdam to New York jumped 25 per cent to $1,968 per 40ft box this week, breaking the usual trend of stability on the Transatlantic. The primary catalyst for this increase is a 13 per cent MoM contraction in available ocean capacity for April.

Drewry’s WCI increased 0.96 per cent to $2,309 per FEU, marking its sixth straight weekly rise, driven by strong Transpacific and Transatlantic rates.
Capacity constraints and rising bunker costs supported the uptrend, while Asia–Europe lanes softened.
Ongoing Hormuz uncertainty and fuel disruptions are likely to keep freight rates elevated.

On the Transpacific route, spot rates from Shanghai to New York increased 7 per cent to $3,671 per 40ft container, while those to Los Angeles rose 9 per cent to $2,910. Maersk is seeking US regulatory approval to waive off the 30-day notice period and to introduce an emergency bunker surcharge, citing elevated and volatile fuel costs amid tensions in the Middle East. The proposed surcharge is $200 per TEU for head-haul and $100 per TEU for backhaul dry shipments. With carriers continuing to push for rate increases, Drewry expects spot rates to increase further in the coming weeks.

Spot rates on the Asia–Europe trade declined this week, with those on Shanghai–Genoa falling 3 per cent to $3,420 per 40ft container and on Shanghai–Rotterdam decreasing 9 per cent to $2,308 per 40ft container. According to Drewry’s Container Capacity Insight, only one blank sailing has been announced for next week on the Asia–Europe trade, indicating relatively stable capacity.

Rates from New York to Rotterdam increased 6 per cent to $1,063 per FEU, while Rotterdam to New York increased 25 per cent to $1,968 per FEU. Rotterdam-Shanghai declined 2 per cent to $592 per FEU, and Los Angeles–Shanghai grew 3 per cent to $762 per 40-foot container.

A temporary two-week ceasefire in the Strait of Hormuz has allowed some shipping activity to resume, but the situation remains uncertain. Vessels are required to coordinate transit with Iranian authorities, and since no clear guidelines are available yet along with proposed transit fees, carriers are proceeding cautiously. The immediate focus is on clearing ships already stuck in the Persian Gulf rather than sending new ones in.

At the same time, disruptions to oil flows, which account for nearly 20 per cent of global supply through the strait, are ongoing and may take months to fully normalise. This continues to squeeze bunker fuel availability, which is expected to keep freight rates elevated in the near term.

Fibre2Fashion News Desk (KUL)