The Drewry World Container Index (WCI)—a composite measure of container freight rates—has seen a further sharp decline, falling by 3.34 per cent to $2,541 per 40-foot equivalent unit (FEU) on March 6, down from $2,629 per FEU the previous week. Global container freight demand showed no signs of improvement, and freight charges have been consistently falling on major routes. Increased shipping capacity continues to dampen sentiment in the global shipping freight business.

According to the weekly report, the index was 76 per cent below the pandemic peak of $10,377 in September 2021 and the lowest since January 2024. However, it remained 79 per cent higher than the pre-pandemic average of $1,420 in 2019.

The average year-to-date composite index is $3,289 per 40ft container, $405 higher than the 10-year average of $2,883, which was inflated by the exceptional 2020-22 COVID period.

Freight rates from Shanghai to Los Angeles decreased by 9 per cent, or $311, to $3,166 per 40ft container, while rates from Shanghai to New York declined by 6 per cent, or $273, to $4,320 per 40ft container. Similarly, rates from Rotterdam to Shanghai fell by 4 per cent, or $20, to $483 per 40ft container, and those from Rotterdam to New York dropped by 1 per cent, or $15, to $2,359 per 40ft container.

However, rates from Shanghai to Rotterdam increased by 2 per cent, or $50, to $2,636 per 40ft container, and those from New York to Rotterdam rose by 1 per cent, or $10, to $845 per 40ft container. Meanwhile, rates from Shanghai to Genoa and Los Angeles to Shanghai remained stable.

Drewry expects rates to continue to decrease next week due to increased shipping capacity.

Fibre2Fashion News Desk (KUL)

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Drewry WCI drops further by 3.3% due to increased shipping capacity

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