Potential labour strike expected to boost Transatlantic and Transpacific shipping rates

Drewry’s World Container Index (WCI) decreased seven per cent to US$3,691 per 40-ft container for the week of Sept. 23-27, which is 64 per cent below the previous pandemic peak of US$10,377 in September 2021, but 160 per cent more than the average pre-pandemic 2019 rate of US$1,420.

The average composite index for the year-to-date is US$4,113 per 40-ft container, which is US$1,288 higher than the 10-year average rate of US$2,825, inflated by the exceptional 2020-22 COVID-19 period.

Fright rates from Shanghai to Genoa decreased 15 per cent to US$4,212 per 40-ft container. Similarly, rates from Shanghai to Rotterdam declined 11 per cent to US$4,157. Likewise, rates from Shanghai to New York dropped five per cent to US$6,028 per 40-ft box, and rates from Shanghai to Los Angeles fell two per cent to US$5,490 per feu.

Conversely, rates from New York to Rotterdam and Rotterdam to New York increased one per cent to US$722 and US$2,067 respectively. Meanwhile, rates from Rotterdam to Shanghai and Los Angeles to Shanghai remain stable.

Drewry expects a continued decline in rates for Asia-to-Europe routes due to weaker demand. Meanwhile, rates for Transatlantic and Transpacific headhaul trade routes are expected to rise, driven by potential labour strikes and the impact of China’s Golden Week holiday.