The Drewry World Container Index (WCI), a widely followed benchmark for global container freight rates, fell 1% this week to $4,473 per forty-foot container.
The decline was driven by lower spot rates on both the trans-Pacific and Asia-Europe trade routes, although resilient demand and ongoing capacity management by carriers continue to support the market.
On benchmark trans-Pacific lanes, spot rates from Shanghai to New York decreased 2% to $9,333 per forty-foot container. Rates from Shanghai to Los Angeles, however, remained unchanged at $6,818.
Drewry’s Container Capacity Insight reported that carriers have announced four blank sailings for the coming week, down from seven in the current week. The reduction in canceled voyages indicates that additional capacity is likely to become available on the trade. With demand continuing to hold up and carriers maintaining control over vessel deployment, Drewry expects freight rates on the trans-Pacific to be similarly less volatile next week.
Rates on the Asia-Europe trade also declined. Spot prices from Shanghai to Genoa fell 2% to $4,866, while Shanghai-Rotterdam decreased 3% to $4,287 per forty-foot container.
Capacity conditions on the Asia-Europe route are tighter than on the trans-Pacific. Drewry said four blank sailings have been announced for next week, compared with two this week. At the same time, congestion at the Port of Shanghai intensified, with average vessel waiting times rising to 96 hours from 35 hours the previous week. Still, Drewry expects Asia-Europe rates to remain stable in the coming week.
The broader east-west container freight market remains uncertain as geopolitical and operational pressures continue to influence vessel routing and cargo flows. Uncertainty surrounding the Strait of Hormuz persists, while some carriers have begun cautiously resuming Suez Canal transits after conducting improved security assessments.
Congestion at ports across Asia is affecting vessel schedules and cargo movements, while low water levels on the Rhine are creating additional challenges for inland transport in Europe. [Reports as of Thursday indicated some improvement there.] The Panama Canal is also scheduled to reduce transit capacity as of September because of water constraints.
Read more articles by Stuart Chirls here.
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