The Drewry World Container Index (WCI), the benchmark widely referenced by procurement teams, fell 2% to $4,351 per 40ft container, driven by a decrease in rates on the Transpacific and Asia-Europe trade routes as demand weakened during China’s Golden Week.
On the Transpacific trade route, rates from Shanghai to Los Angeles fell 3% to $7,624 per 40ft container, while from Shanghai to New York decreased 2% to $10,220 per 40ft container. According to Drewry’s Container Capacity Insight, four blank sailings have been announced for next week, down from eleven this week, indicating increased capacity. Meanwhile, the extended US–China trade truce could support a rebound in US-bound demand as the Chinese New Year holiday comes to an end. Drewry expects rates to remain stable next week.
On the Asia–Europe trade route, rates from Shanghai to Rotterdam fell 2% to $3,337 per 40ft container, while those from Shanghai to Genoa remained stable at $3,696 per 40ft container. According to Drewry’s Container Capacity Insight, six blank sailings have been announced for next week, up from five this week, indicating a slight reduction in scheduled capacity.
Carriers are attempting to reverse the downward trend by introducing higher FAK rates in the second half of October. However, the successful implementation of these increases remains uncertain. The faster-than-expected return to the Suez route remains the biggest threat to carrier efforts to support rates, which have declined for 13 consecutive weeks on the Asia–Europe trade. Drewry expects rates to remain stable next week.
The East–West container freight market slowed during China’s Golden Week, with factory closures disrupting cargo flows. Several Transpacific and Asia–Europe services were cancelled as carriers cut capacity in response to weaker Chinese export volumes. At the same time, increasing Suez Canal transits are adding capacity to the Asia–Europe trade, while uncertainty around Houthi activity remains. Overall, the market is expected to remain volatile in the near term, with demand, capacity changes and geopolitical developments likely to influence freight rates.
(Photo of Cosco vessel in Long Beach)