The Drewry World Container Index (WCI) continues its downward trend, dropping by 4.75 per cent to $3,970 per 40ft container in the week ending September 19, down from $4,168 the previous week. This benchmark for global sea freight rates has been falling sharply after a brief rise approximately two months ago. The proposed ILA strike has also contributed to the decline in freight rates.

The latest Drewry WCI composite index of $3,970 per 40ft container is 62 per cent lower than the pandemic peak of $10,377 in September 2021, though it remains 180 per cent higher than the pre-pandemic average of $1,420 recorded in 2019.

The average composite index for the year to date is $4,124 per 40ft container, which is $1,302 higher than the 10-year average rate of $2,821 (inflated by the exceptional rates during the COVID-19 period from 2020-2022).

Freight rates from Shanghai to Rotterdam dropped 9 per cent, or $470, to $4,682 per 40ft container during the review week. Similarly, rates from Shanghai to Genoa fell by 6 per cent, or $328, to $4,928 per FEU. Rates from Shanghai to New York also declined, falling by 4 per cent, or $297, to $6,364 per 40ft container.

Additionally, spot rates from Shanghai to Los Angeles slipped by 1 per cent, or $47, to $5,580 per 40ft container. In contrast, spot rates from Rotterdam to New York increased by 2 per cent, or $45, to $2,056 per 40ft container. Similarly, rates from New York to Rotterdam rose by 1 per cent, or $9, reaching $713 per FEU.

While the potential ILA port strike looms, transpacific eastbound freight rates have seen a slight decline this week. However, weak demand is expected to lead to further reductions in East-West spot rates in the coming weeks.

Fibre2Fashion News Desk (KUL)

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Drewry WCI declines 4.75%, weak demand set to drive further decreases

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