Container rates up four per cent

The Drewry World Container Index (WCI) increased four per cent to US$1,822 per 40-ft container, the third straight week of increases following a prolonged decline over 17 consecutive weeks.

Spot rates from Shanghai to Los Angeles increased six per cent to US$2,438 per 40-ft container and those to New York rose four per cent to US$3,568. Drewry expects a slight rate increase next week, driven by the implementation of general rate increases (GRIs) on Nov. 1. However, this momentum is likely to be short-lived, with rates expected to decline soon after.

Spot rates from Shanghai to Rotterdam increased three per cent to US$1,795 per 40-ft container and from Shanghai to Genoa rose five per cent to US$1,955. Carriers on the Asia–Europe trade route are trying to push spot rates up by introducing increased FAK (freight all kinds) rates effective from Nov. 1 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.