Drewry Container Freight Index Falls 1% to US$4,389

The Drewry World Container Index (WCI) registered a 1% decline over the past week, settling at $4,389 per 40-foot container. According to the consultancy, the drop is mainly explained by lower rates on the Transpacific and Asia-Europe routes, amid improving port congestion and softer demand at Chinese ports.

On the Transpacific route, rates from Shanghai to New York fell 3% to $9,303 per 40-foot container, while rates from Shanghai to Los Angeles remained unchanged at $7,539. Drewry noted that congestion at major Chinese ports, which had persisted for several weeks, began to ease, with average vessel waiting times in Shanghai improving to 35 hours thanks to better weather conditions and more moderate demand. The consultancy also pointed out that three blank sailings were announced for the following week, compared to five in the week under review, reflecting an increase in effective capacity and leading to a forecast of further rate declines.

On the Asia-Europe route, rates from Shanghai to Rotterdam fell 2% to $3,615 per 40-foot container, while rates from Shanghai to Genoa held steady at $4,166. Drewry explained that carriers are pushing FAK rate increases in mid-November to strengthen their position ahead of next year's contract negotiations, even as effective capacity continues to rise due to the resumption of transits through the Suez Canal. Five blank sailings were reported for the following week, compared to eight in the week under review, leading the consultancy to forecast stable rates on this leg.

Drewry described the East-West container shipping market as under pressure from greater capacity availability and weak demand. Transits through the Suez Canal continue to increase, with 60% of Asia-Europe capacity now using that route and 53 vessels transiting the canal in both directions during the week. The consultancy warned that an accelerated return to the Suez route could lead to overlapping vessel arrivals from Suez and the Cape of Good Hope, raising the risk of bunching and cargo congestion at European ports. It also mentioned uncertainty in the Strait of Hormuz, following another round of limited US strikes against Iran, as well as a possible strike by security guards at the ports of Los Angeles and Long Beach as an additional risk for shippers.