Increase in eastbound freight rates could be due to potential U.S. port strike

Drewry’s World Container Index (WCI) decreased two per cent to US$5,319 per 40-ft container for the week of Aug. 19-23, marking the fifth consecutive week of declines.

The latest Drewry WCI composite index of US$5,319 per 40-ft container is 49 per cent below the previous pandemic peak of US$10,377 in September 2021, but it is 274 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$4,077 per 40-ft container, which is US$1,273 higher than the 10-year average rate of US$2,803, which was inflated by the exceptional 2020-22 COVID-19 period.

Spot rates from Rotterdam to New York fell one per cent or to US$1,934 per 40-ft box. Conversely, rates from Shanghai to Los Angeles increased two per cent or to US$6,401 per 40-ft container. Similarly, rates from Shanghai to New York inched up one per cent or US$8,811 per feu. Meanwhile, rates from Rotterdam to Shanghai, Los Angeles to Shanghai and New York to Rotterdam remain stable.

The recent uptick in transpacific eastbound freight rates to the U.S. West Coast and East Coast could be attributed to the looming International Longshoreman’s Association port strike and the anticipated rush to ship goods before the strike begins. Therefore, Drewry expects rates on Transpacific trade to continue increasing in the coming weeks.