The Drewry World Container Index (WCI) composite index fell by 5.43 per cent to $3,095 per 40-foot equivalent unit (FEU) on February 13, down from $3,273 per FEU the previous week. This decrease was due to slow demand. Although the Chinese Lunar New Year holidays had ended, the slow demand and higher shipping capacity continued to pressure container freight rates, a trend expected to persist in the coming week.
The index was 70 per cent below the previous pandemic peak of $10,377 in September 2021 but still 118 per cent higher than the pre-pandemic average of $1,420 in 2019. The average year-to-date composite index is $3,560 per 40-foot container, $680 higher than the 10-year average of $2,880, inflated by the exceptional 2020-22 COVID period.
With freight rates from major routes also declining, the index remains well below its 2021 peak yet significantly above 2019 levels.
Stability in transatlantic rates contrasts with expected further decreases in spot rates.
Freight rates from Shanghai to Rotterdam decreased by 8 per cent or $238 to $2,887 per 40-foot container, while those from Shanghai to Los Angeles fell by 7 per cent or $325 to $4,392 per 40-foot container. Rates from Shanghai to New York were reduced by 5 per cent or $338 to $5,874 per 40-foot container. Rates from Shanghai to Genoa and Los Angeles to Shanghai decreased by 2 per cent and 1 per cent to $4,163 and $703 per 40-foot container, respectively.
Meanwhile, rates from Rotterdam to Shanghai, New York to Rotterdam, and Rotterdam to New York remained stable.
Drewry expects spot rates to decrease in the coming week due to lower demand following the Chinese New Year holidays.
Fibre2Fashion News Desk (KUL)