Containers originating from Shanghai spurs rate decline

Drewry’s World Container Index (WCI) plunged 11 per cent to US$3,445 per 40-ft container for the week of Jan. 20-24, with rates originating in Shanghai leading the decline.

The WCI composite index is now 67 per cent below the previous pandemic peak of US$10,377 in September 2021, but is 143 per cent higher than the average US$1,420 in 2019.

The average year-to-date composite index is US$3,798 per 40-ft container, US$924 higher than the 10-year average of US$2,874, which was inflated by the COVID-19 period.

Freight rates from Shanghai to Rotterdam decreased 19 per cent to US$3,434 per 40-ft container, while those from Shanghai to Genoa fell 10 per cent to US$4,562 per 40ft container. Similarly, rates from Shanghai to Los Angeles dropped eight per cent to US$4,813 per 40-ft container followed by rates from Shanghai to New York which decreased seven per cent to US$6,377.

Rates from Rotterdam to Shanghai, Los Angeles to Shanghai, New York to Rotterdam and Rotterdam to New York also decreased, all by one per cent to US$515, US$721, US$821 and US$2,778 respectively.

Drewry expects spot rates to decrease slightly in the coming week on the back of the Chinese Lunar New Year holidays.