Weekly container rates stabilize

The Drewry World Container Index (WCI) remained stable for the week of Nov. 17-21 at US$1,852 per 40-ft container. The index maintained stability due to decreased Transpacific rates and increased Asia-Europe rates offsetting each other.

Spot rates on the Transpacific headhaul continue to decrease for the second consecutive week, with rates from Shanghai to New York falling 10 per cent to US$2,922 per 40-ft container and rates to Los Angeles dropping seven per cent to US$2,172. As per Drewry’s Container Capacity Insight, blank sailings on the Transpacific trade are expected to decrease next week, leading to more available capacity. Drewry expects rates to soften slightly next week.

The Asia-Europe trade route recorded its sixth straight week of increasing spot rates. Rates from Shanghai to Genoa increased six per cent to US$2,319 per 40-ft container and from Shanghai to Rotterdam rates were up eight per cent to US$2,193. Carriers on the Asia–Europe trade route are trying to push spot rates up by introducing higher freight-all-kinds rates ranging from US$3,100 to US$4,000 per 40-ft box, effective Dec. 1, in an attempt to elevate spot rates before the start of the new annual contract negotiation season.

Drewry’s container forecaster expects the supply-demand balance to weaken in the next few quarters, particularly if normal Suez Canal transits resume.