The Drewry World Container Index (WCI) declined for the third consecutive week, easing 1% to $2,216 per 40ft container, due to softer rates on Asia–Europe, Transpacific and Transatlantic trade routes. Despite elevated fuel costs and ongoing geopolitical risks, rates remain under sustained downward pressure due to excess capacity and low demand.
Spot rates on the Asia–Europe trade route continued to soften this week, reflecting the ongoing supply–demand imbalance. Rates from Shanghai to Genoa and Rotterdam fell 1% to $3,039 and $2,127 per 40ft container, respectively. In response to falling rates, carriers are managing capacity through blank sailings and capacity reductions. According to Drewry’s Container Capacity Insight, seven blank sailings have been announced for the coming week, with effective capacity expected to decline 3% MoM on Asia–North Europe and 10% MoM on Asia–Med in May. Drewry expects rates to remain stable next week.
On the Transpacific trade route, rates decreased this week due to market volatility amid uneven demand and capacity adjustments. Rates from Shanghai to New York fell 2% to $3,483 per 40ft container, while rates from Shanghai to Los Angeles remained stable at $2,930 per 40ft container.
According to Drewry’s Container Capacity Insight, eight blank sailings have been announced for next week. Effective capacity is expected to increase 11% MoM on Asia to ECNA and 6% MoM on Asia to WCNA in May. In addition, carriers are implementing Emergency fuel surcharges (EFS) and Peak season surcharges (PSS) effective 1 May, with MSC increasing EFS on the Asia–USEC route from $430 to $644 per 40ft container and CMA CGM introducing PSS of $2,000 per 40ft container. Drewry expects freight rates to increase next week.
Middle East tensions around the Strait of Hormuz remain under watch, with carriers staying cautious on routing and operations. Carriers are also actively adjusting pricing through EFS, PSS, and firmer FAK levels, keeping the market reactive despite stable vessel movement.
(Photo of Hapag-Lloyd ship at Hong Kong)