Container rates down due to weak demand

After a 16 per cent jump last week, the Drewry World Container Index (WCI) dropped four per cent to US$2,445 per 40-ft container for the week of Jan. 12-16, mainly due to a decrease in rates on the Transpacific and Asia–Europe trade routes.

Spot rates on Shanghai to New York fell by 10 per cent to US$3,568 per 40-ft container and those from Shanghai to Los Angeles decreased seven per cent to US$2,909. Carriers were unable to sustain rates because of weak demand despite upwards pressure on spot rates due to the expected Chinese New Year factory shutdowns in mid-February.

Spot rates on the Shanghai–Rotterdam decreased three per cent to US$2,763 per 40-ft container, while those on Shanghai–Genoa dropped one per cent to US$3,839.

Some ocean carriers have put their plans on hold to resume transits via the Red Sea amid escalating protests in Iran and the risk of direct U.S. military intervention, which continues to drive volatility in the region.