Ocean container rates continue to decline

Drewry’s World Container Index (WCI) decreased three per cent to US$5,551 per 40-ft container the week of Aug. 8, the third straight week rates have dropped.

The latest WCI composite index of US$5,551 per 40-ft container is 47 per cent below the previous pandemic peak of US$10,377 in September 2021, but it is 291 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$3,996 per 40-ft container, which is US$1,204 higher than the 10-year average rate of US$2,791 (which was inflated by the exceptional 2020-22 COVID-19 period).

Freight rates from Shanghai to Los Angeles and Shanghai to Genoa decreased four per cent to US$6,501 and US$7,309 per 40-ft container, respectively. Spot rates from Shanghai to Rotterdam and Shanghai to New York declined three per cent to US$7,929 and US$8,931 per 40-ft container, respectively.

Conversely, rates from Rotterdam to New York and Rotterdam to Shanghai increased one per cent to US$1,967 and US$630 per feu, respectively. Meanwhile, rates from Los Angeles to Shanghai and New York to Rotterdam remain stable.

Drewry believes that spot rates have peaked, but continued shipping disruptions will keep a floor under the spot rates for some time.