Container rates down another five per cent

The Drewry World Container Index (WCI) fell five per cent to US$2,107 per 40-ft container for the third consecutive week, primarily due to a drop in rates on the Transpacific and Asia–Europe trade routes.

Spot rates on Shanghai to New York decreased seven per cent to US$2,969 per 40-ft container and those on Shanghai to Los Angeles fell four per cent to US$2,442. According to Container Capacity Insight, carriers have announced 63 blank sailings in February, up from 27 in January, as demand remains weak ahead of the Chinese New Year factory closure. Drewry expects spot rates to continue to decrease further in the coming weeks.

Spot rates on Asia–Europe trade routes continued to decrease for the third consecutive week, with rates on Shanghai–Rotterdam dropping five per cent to US$2,379 per 40-ft container and those on Shanghai–Genoa falling six per cent to US$3,293.

Amid declining rates, carriers are adopting divergent strategies for the Suez Canal. CMA CGM is withdrawing its Asia–Europe services from the region, while Maersk plans to resume its scheduled service from India to the U.S. East Coast via the canal.

These conflicting operational decisions suggest that effective shipping capacity will be reintroduced to the market gradually rather than all at once. Drewry said this ‘drip-feed’ approach allows carriers to carefully assess risk and adjust their future networks, preventing a catastrophic collapse in spot rates.