Container rates down since early June

The Drewry World Container Index (WCI) continued its decline for the week of Sept. 22-26, falling eight per cent to US$1,761 per 40-ft container.

This marks the 15^th consecutive week of decline, with rates on major trade routes—Transpacific and Asia–Europe—also trending downwards.

Spot rates from Shanghai to Los Angeles decreased 10 per cent to US$2,311 per 40-ft container, while those from Shanghai to New York decreased eight per cent to US$3,278. Despite a brief uptick in early September, the momentum from general rate increases and blank sailings has now subsided, which has led to a reduction in rates.

Asia to Europe spot rates fell this week again, as rates declined nine per cent to US$1,735 per 40-ft container on Shanghai–Rotterdam and seven per cent to US$1,990 on Shanghai to Genoa. Ocean carriers are reducing capacity to align with slowing demand ahead of China’s Golden Week holiday, when factories will be shut for eight days starting Oct. 1. As a result, freight rates are expected to continue declining in the coming week.

Drewry’s Container Forecaster expects the supply-demand balance to weaken in the next few quarters, which will cause spot rates to contract.