Container rates continue to plunge

Drewry’s World Container Index (WCI) sank four per cent again the week of Oct. 21-25 to US$3,095 per 40-ft container, despite spike in Rotterdam to New York route.

The latest drop puts container rates 70 per cent below the previous pandemic peak of US$10,377 in September 2021, but 118 per cent more than the average 2019 pre-pandemic rate of US$1,420.

The average year-to-date composite index is US$4,036 per feu, which is US$1,200 higher than the 10-year average of US$2,836, which is inflated by the COVID-19 period.

Freight rates from Shanghai to Rotterdam decreased seven per cent to US$3,132 per feu, while rates from Shanghai to New York decreased six per cent to US$5,266 and those from Shanghai to Genoa fell four per cent to US$3,296. Rates from Shanghai to Los Angeles dropped three per cent to US$4,814 and rates from Los Angeles to Shanghai shrank one per cent to $710.

Conversely, rates from Rotterdam to New York skyrocketed 28 per cent or US$580 to US$2,663 per feu and those from New York to Rotterdam increased four per cent to $761.

Drewry expects rates, with the exception of China, to continue with their marginal decline in the coming weeks.