Container rates jump on U.S.-China trade agreement news

Drewry’s World Container Index jumped eight per cent to US$2,233 per 40-ft container for the week of May 12-16, the first increase since April 10.

The Drewry WCI composite index is now 78 per cent below the previous pandemic peak of US$10,377 in September 2021, but is 57 per cent higher than the average US$1,420 in 2019.

The average year-to-date composite index closed at US$2,746 per 40-ft container, US$151 lower than the 10-year average of US$2,896, which was inflated by the COVID-19 period.

Freight rates from Shanghai to New York surged 19 per cent or US$704 to US$4,350 per 40-ft container and those from Shanghai to Los Angeles shot up 16 per cent to US$3,136. Rates from New York to Rotterdam increased a marginal one per cent to US$824 per 40-ft container.

Rates from Shanghai to Rotterdam, Shanghai to Genoa and Rotterdam to New York dropped one per cent to US$2,035, US$2,742 and US$1,961 per 40-ft container, respectively, while those from Rotterdam to Shanghai and Los Angeles to Shanghai remained stable.

Following the latest U.S.–China trade developments, Drewry expects an increase in Transpacific spot rates in the coming week due to shortage in capacity.