Container rates down, while strike in Belgium impacts port operations

The Drewry World Container Index (WCI) dropped slightly for the week of Nov. 24-28, down two per cent to US$1,806 per 40-ft container. The decline was primarily due to reduced rates on the Transpacific and Asia–Europe trade routes.

Spot rates on the Transpacific headhaul route continue to decrease for the third consecutive week, with rates from Shanghai to New York falling six per cent to US$2,735 per 40-ft container and rates to Los Angeles down four per cent to US$2,089. According to Drewry’s Container Capacity Insight, blank sailings on the Transpacific trade route are expected to decrease next week, which could increase available capacity. Consequently, Drewry anticipates a slight softening in rates next week.

After six weeks of continuous increase, spot rates on the Asia–Europe trade route decreased this week with rates from Shanghai to Genoa and Rotterdam falling by one per cent this week to US$2,300 and US$2,165 per 40-ft container respectively. Carriers on this trade route are attempting to raise spot rates by implementing higher freight-all-kinds levels, ranging from US$3,100 to US$4,000 per 40-ft container, effective Dec. 1. This move is aimed at boosting spot rates ahead of the upcoming annual contract negotiation season.

The national strike in Belgium has disrupted port operations and increased congestion at the Port of Antwerp. This congestion is expected to worsen as a few carriers are planning to return to the Suez Canal route, which Drewry said will further strain port efficiency, leading to longer delays and surging spot rates.

Drewry’s container forecaster expects the supply-demand balance to weaken in the next few quarters, particularly if normal Suez Canal transits resume.