The Drewry World Container Index (WCI) decreased 5% to $1,859 per 40ft container, marking the first weekly decrease after four weeks of continuous increases, Drewry reported today.
Spot rates on the Transpacific Headhaul saw a double-digit decrease this week, with rates from Shanghai to New York falling 15% to $3,254 per 40ft container and rates to Los Angeles dropping 12% to $2,328.
Although carriers were able to briefly sustain rates using GRIs, that impact proved short-lived as rates softened this week due to waning demand, with retailers having already imported their holiday season merchandise. Hence, Drewry anticipates rates will either soften slightly or hold steady next week.
Spot rates from Shanghai to Genoa increased 4% to $2,193 per 40ft container and from Shanghai to Rotterdam they rose 3% to $2,028. Carriers on the Asia–Europe trade route are trying to push spot rates up by introducing higher FAK rates ranging from $3,000 to $3,650 per 40ft box, effective 15 November, in an attempt to elevate spot rates before the start of the new annual contract negotiation season.
The market’s underlying fundamentals remain fragile, with Drewry’s Container Forecaster expecting the supply-demand balance to weaken in the next few quarters, particularly if normal Suez Canal transits resume.
Meanwhile, Peter Sand, Chief Analyst at Xeneta, has warned that a large-scale return to the Red Sea could have dramatic consequences for global container shipping. “Details are sketchy and you cannot base the safety of crews, ships and cargo on the word of Houthi militia. Carriers need far more assurance than that and, perhaps more importantly, so do insurance companies.
(Dreamstime photo of containership)