Container rates up for first time since mid-June

The Drewry World Container Index (WCI) rose two per cent to US$1,687 per 40-ft container for the week of Oct. 13-17, recording its first increase after 17 consecutive weeks of decline.

Spot rates from Shanghai to Los Angeles increased one per cent to US$2,195 per 40-ft container and those to New York were up one per cent, reaching US$3,236. Drewry expects further rate hikes next week, driven by the general rate increases (GRIs) that carriers implemented Oct. 15. However, this momentum is expected to be short-lived, with rates likely to decline soon. Carriers could follow up with new GRI attempts Nov. 1 and 15 to counteract this drop, if it happens.

Spot rates on the Asia–Europe route showed modest increases this week, with rates from Shanghai to Rotterdam jumping six per cent to US$1,669 per 40-ft container and from Shanghai to Genoa up two per cent to US$1,821. These increases follow an industry-wide effort by carriers that introduced new Freight All Kinds (FAK) rates effective Oct. 15 to stop the market’s post-Golden Week rate slump.

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