The Drewry World Container Index (WCI), a key indicator of global container freight prices, fell 8% this week to $4,775 per 40-foot container. This represents a significant decline of 54% from its peak in September 2021, when the index stood at $10,377, due to the disruptions caused by the corona pandemic.
Freight rates still higher than before the pandemic
Although current rates are substantially lower than the pandemic peaks, container freight costs are still 236% above the 2019 pre-pandemic level, when the average price was $1,420 per 40-foot container. The average index for 2024 so far is $4,127, which is significantly higher than the 10-year average of $2,814, partly due to exceptionally high prices in the 2020-2022 period.
Declining rates from Shanghai to Europe
The decline in container rates is visible worldwide, especially on the route from Shanghai to Europe. Freight rates from Shanghai to Rotterdam fell 14%, dropping from $985 to $6,219 per container. The route to Genoa also saw a 12% drop, with a new price of $5,842 per container.
Small shifts on other routes
Other routes also saw declines. Rates from Shanghai to Los Angeles fell 3% to $6,030 per container, and prices from Shanghai to New York decreased 2% to $8,451. At the same time, rates on the route from Rotterdam to Shanghai went down 2% to $612. An exception was the route from Rotterdam to New York, where prices actually increased by 16% to $2,212 per container. Rates from Los Angeles to Shanghai remained almost stable, up slightly 1% to $714.
Expectations for the coming weeks
Despite the threat of a possible strike by the International Longshoremen's Association (ILA) in the United States, trans-Pacific freight rates fell slightly this week. Drewry expects rates on Asia-Europe routes to fall further in the coming weeks, due to falling demand and the recovery of global supply chains.
Source: Drewry
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