The Drewry World Container Index (WCI) fell 1% to $1,933 per 40ft container for the fifth consecutive week, primarily due to a drop in rates on the Transpacific and Asia–Europe trade routes.
“Container spot rates are falling sharply, which indicates that the market is weak, contrary to the general expectation of rising demand and increasing spot rates before the Chinese New Year, “ Drewry consultancy said. “This year, rates peaked earlier than usual, and if the normal seasonal pattern continues, they might decrease further.”
Spot rates from Shanghai to major US destinations declined slightly due to low cargo volume, with spot rates to Los Angeles and New York falling 1% to $2,214 and $2,800 per 40ft container, respectively. In response to the weak demand ahead of factory closures, carriers managed capacity by announcing 57 blank sailings over the next two weeks on the Transpacific East and West Coasts trade lane, much higher than in previous years, according to Drewry’s Container Capacity Insight. Hence, we expect spot rates on this trade to decline slightly in the coming weeks.
Spot rates on Asia–Europe trade routes continued to decline, with rates on Shanghai–Rotterdam falling 2% to $2,127 per 40ft container and those on Shanghai–Genoa dropping 3% to $2,965. According to Container Capacity Insight, carriers have announced 24 blank sailings on the Asia–Europe/Med trade route over the next two weeks due to the ongoing market volatility and CNY factory closures. Drewry expects spot rates on this trade to decrease slightly in the coming weeks.
(Dreamstime container vessel photo)