Drewry's World Container Index (WCI), an independent global benchmark for index-linked contracts in shipping, fell 6% last week to $2,629 per 40-foot container. This is the lowest level since May 2024 and is 75% below the peak of $10,377 reached in September 2021 during the pandemic. Despite this, the index remains 85% higher than the 2019 pre-pandemic average of $1,420.
Current developments in freight rates
The average composite index of this year so far is $3,372 per 40-foot container, which is $489 higher than the 10-year average of $2,882. However, the latter average has been affected by the exceptional conditions of the Covid-19 period between 2020 and 2022.
The following changes in freight rates were observed on major trade routes:
- Rates from Shanghai to Los Angeles fell 11% (-$411) to $3,477 per 40-foot container.
- Shanghai to New York rates fell 10% (-$533) to $4,593 per 40-foot container.
- Shanghai to Genoa rates fell 2% (-$90) to $3,747 per 40-foot container.
- Rates from Shanghai to Rotterdam and Rotterdam to New York fell 1% to $2,586 and $2,374 per 40-foot container, respectively.
- On the contrary, rates from Rotterdam to Shanghai and New York to Rotterdam increased 1% to $503 and $835 per 40-foot container, respectively.
- Rates from Los Angeles to Shanghai remained unchanged.
Outlook
According to Drewry, freight rates are expected to fall further this week due to an increase in shipping capacity. This may affect the costs and strategies of companies that rely on container shipping for their logistics operations.
Source: Drewry