Container rates jump eight per cent

The Drewry World Container Index (WCI) increased eight per cent to US$1,959 per 40-ft container, marking the fourth straight week of increases following a prolonged decline over 17 consecutive weeks.

Spot rates from Shanghai to Los Angeles increased nine per cent to US$2,647 per 40-ft container and those to New York rose eight per cent to US$3,837 on the back of Nov. 1 general rate increases (GRIs). Drewry said carriers continue to implement GRIs to counter the downward pressure on spot rates from increased capacity. However, this upward momentum is expected to be short-lived, with rates likely to soften unless further GRIs are introduced.

Spot rates from Shanghai to Rotterdam increased nine per cent to US$1,962 per 40-ft container and from Shanghai to Genoa they are up eight per cent to US$2,111. Carriers on the Asia–Europe trade route are trying to push spot rates up by introducing higher FAK rates ranging from US$3,000 to US$3,600 per 40-ft box, effective Nov. 15, in an attempt to elevate spot rates before the start of the new annual contract negotiation season.

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