Increased shipping capacity driving down container rates

Drewry’s World Container Index (WCI) decreased three per cent to US$2,541 per 40-ft container for the week of March 3-7.

The Drewry WCI composite index is now 76 per cent below the previous pandemic peak of US$10,377 in September 2021 and the lowest since January 2024. However, the index is 79 per cent higher than the average US$1,420 in 2019.

The average year-to-date composite index is US$3,289 per 40-ft container, US$405 higher than the 10-year average of US$2,883, which is inflated by the COVID-19 period.

Freight rates from Shanghai to Los Angeles decreased nine per cent or to US$3,166 per 40-ft container and those from Shanghai to New York declined six per cent to US$4,320. Rates from Rotterdam to Shanghai fell four per cent to US$483 per 40-ft container and those from Rotterdam to New York dropped one per cent to US$2,359.

Rates from Shanghai to Rotterdam increased two per cent to US$2,636 per 40-ft container and those from New York to Rotterdam rose one per cent to US$845.

Rates from Shanghai to Genoa and Los Angeles to Shanghai remained stable.

Drewry expects rates to continue to decrease next week due to increased shipping capacity.