Container rates have dropped since mid-July

Drewry’s World Container Index (WCI) decreased five per cent to US$3,970 per 40-ft container for the week of Sept. 16-20.

The latest WCI composite index is 62 per cent below the previous pandemic peak of US$10,377 in September 2021, but it is 180 per cent more than the average 2019 (pre-pandemic) rate of US$1,420.

The average composite index for the year-to-date is US$4,124 per 40-ft container, which is US$1,302 higher than the 10-year average rate of US$2,821, which was inflated by the 2020-22 COVID-19 period.

Freight rates from Shanghai to Rotterdam plunged nine per cent to US$4,682 per 40-ft container, while rates from Shanghai to Genoa contracted six per cent. Likewise, rates from Shanghai to New York declined four per cent to US$6,364 per 40-ft box. Also, spot rates from Shanghai to Los Angeles dropped one per cent to US$5,580 per 40-ft container.

Conversely, spot rates from Rotterdam to New York went up two per cent to US$2,056 per 40-ft box and rates from New York to Rotterdam inched up one per cent to US$713 per feu.

While the looming ILA port strike casts a shadow, transpacific eastbound freight rates have experienced a minor decline this week. However, Drewry says weak demand is expected to drive further decreases in east-west spot rates in the coming weeks.