The Drewry World Container Index (WCI), the benchmark widely referenced by procurement teams, fell 1% to $4,434 per 40ft container, driven by a decrease in rates on the Asia- Europe trade route.
On the Transpacific trade route, rates from Shanghai to New York rose 1% to $10,428 per 40ft container, while those from Shanghai to Los Angeles remained stable at $7,835 per 40ft container. Carriers continue to manage capacity via blank sailings. According to Drewry’s Container Capacity Insight, 10 blank sailings have been announced for next week, down from thirteen this week, indicating increased capacity. While demand remains resilient, factories across China will remain shut during Golden Week, reducing cargo volumes; therefore, Drewry expects rates to decrease next week.
On the Asia–Europe trade route, rates from Shanghai to Genoa fell 3% to $3,702 per 40ft container, while from Shanghai to Rotterdam decreased 2% to $3,399 per 40ft container. Rates on the Asia–Europe trade have now declined for 12 consecutive weeks, reflecting weak demand. According to Drewry’s Container Capacity Insight, five blank sailings have been announced for next week, down from six this week, indicating slightly more scheduled capacity. Additionally, increasing vessel transits through the Suez Canal are adding effective capacity to the trade, putting further downward pressure on rates. Carriers are attempting to reverse the downward trend by introducing higher FAK rates in the second half of October, following China’s Golden Week holiday. However, the successful implementation of these increases remains uncertain. Drewry expects rates to continue declining next week amid the Golden Week holiday.
The East–West container freight market remains under pressure as China’s Golden Week has started, with factory closures affecting cargo flows. At the same time, increasing Suez Canal transits are adding capacity to the Asia–Europe trade, while uncertainty around Houthi activity remains. Suez transits in Week 39 were 68% higher than in the same week last year.
Disruptions in the Strait of Hormuz also continue to affect shipping operations. The extended US–China trade truce could support a rebound in US-bound demand after the holiday period. Overall, the market is expected to remain volatile in the near term, with demand, capacity changes and geopolitical developments likely to influence freight rates.
(Container vessel photo from Dreamstime)