Container rates down another percent

The Drewry World Container Index (WCI) ticked downward another one per cent to US$1,919 per 40-ft container for the week of Feb. 16-20.

The drop marks the sixth consecutive week of declines due to falling rates on the Transpacific and Asia–Europe trade routes.

Spot rates from Shanghai to New York decreased one per cent to US$2,782, while those on Shanghai to Los Angeles remained stable at US$2,219 per 40-ft container.

To maintain the supply-demand balance, carriers are managing capacity by announcing blank sailings. According to Drewry’s Container Capacity Insight, 31 blank sailings have been announced for the next week on the Transpacific East and West Coasts trade lane, much higher than in previous years. Drewry expects spot rates on this trade lane to continue softening in the coming weeks.

Spot rates on Asia–Europe trade routes also continued to decline, with rates on Shanghai–Rotterdam falling one per cent to US$2,109 per 40-ft container and those on Shanghai–Genoa dropping two per cent to US$2,895. According to Container Capacity Insight, carriers have announced eight blank sailings on the Asia–Europe/Mediterranean trade route for next week due to the volatile market and ongoing factory closure due to Chinese New Year. Drewry expects spot rates on this trade to decline slightly in the coming weeks.

Container spot rates are falling sharply, which indicates the market is weak, contrary to the general expectation of rising demand and increasing spot rates before the Chinese New Year. This year, rates peaked earlier than usual, and if the normal seasonal pattern continues, they could decrease further.