Container rates lowest since January 2024

The Drewry World Container Index (WCI) fell five per cent to US$1,669 per 40-ft container, for the week of Sept. 29 to Oct. 3, marking the 16^th consecutive weekly decline and reaching the lowest level since January 2024.

Spot rates from Shanghai to Los Angeles decreased five per cent to US$2,196 per 40-ft container, while those from Shanghai to New York dropped two per cent to US$3,200.

Asia to Europe spot rates fell this week again, falling for the 10^th consecutive week, declining seven per cent to US$1,613 per 40-ft container on Shanghai to Rotterdam and nine per cent to US$1,804 on Shanghai to Genoa.

Carriers are increasing blank sailings and reducing capacity to align with slowing demand ahead of China’s Golden Week holiday when factories will be shut for eight days from Oct. 1. As a result, East–West spot rates are expected to decrease in the coming weeks.

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