Drewry WCI slips 5% to lowest point since Jan 2024

The Drewry World Container Index (WCI)—a composite measure of container freight rates—continued to fall, marking its sixteenth consecutive weekly decline. It dropped 5.22 per cent to $1,669 per 40-foot equivalent unit (FEU) on October 02, down from $1,761 per FEU the previous week. This is the lowest level since January 2024.

Spot rates from Shanghai to Los Angeles fell 5 per cent to $2,196 per 40ft container, while those from Shanghai to New York dropped 2 per cent to $3,200 per 40ft container.

Drewry World Container Index (WCI) dropped for the sixteenth consecutive week, falling 5.22 per cent to $1,669 per FEU on October 02, the lowest since January 2024.
Spot rates on key Asia–Europe and transpacific routes weakened further, while only New York–Rotterdam gained slightly.
Drewry expects the supply-demand balance to deteriorate in coming quarters, pushing freight rates lower.

Asia–Europe spot rates also declined for the tenth straight week, falling 7 per cent to $1,613 per 40ft container on the Shanghai–Rotterdam route and 9 per cent to $1,804 per 40ft container on the Shanghai–Genoa route. Freight rates on the Rotterdam–Shanghai route eased slightly to $461 from $459 per FEU. Rates fell 1 per cent on the Los Angeles–Shanghai route to $712 per FEU and on the Rotterdam–New York route to $1,796 per FEU. However, freight on the New York–Rotterdam route rose 1 per cent to $847 per FEU.

Carriers are increasing blank sailings and cutting capacity to align with slowing demand ahead of China’s Golden Week holiday, when factories will be shut for eight days from October 01. As a result, East–West spot rates are expected to decline further in the coming weeks.

Drewry’s Container Forecaster projects that the supply-demand balance will weaken in the next few quarters, leading to further contractions in spot rates.

Fibre2Fashion News Desk (KUL)