Drewry's World Container Index decreased 2% to $5,319 per 40ft container this week. The latest Drewry WCI composite index of $5,319 per 40ft container is 49% below the previous pandemic peak of $10,377 in September 2021, but it is 274% more than the average 2019 (pre-pandemic) rate of $1,420.
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Freight rates from Shanghai to Genoa decreased 5% or $394 to $6,788 per 40ft container. Similarly, rates from Shanghai to Rotterdam dropped 4% or $327 to $7,429 per feu. Likewise, spot rates from Rotterdam to New York fell 1% or $27 to $1,934 per 40ft box. Conversely, rates from Shanghai to Los Angeles increased 2% or $98 to $6,401 per 40ft container. Similarly, rates from Shanghai to New York inched up 1% or $47 to $8,811 per feu.
Meanwhile, rates from Rotterdam to Shanghai, Los Angeles to Shanghai and New York to Rotterdam remain stable. The recent uptick in transpacific Eastbound freight rates to the US West Coast and East Coast could be attributed to the looming ILA port strike on October 1 and the anticipated rush to ship goods before the strike begins. Therefore, Drewry expects rates on Transpacific trade to continue increasing in the coming weeks.
Table: Drewry
Drewry expects 2024 to be the second highest year on record for dry freight container manufacturing, driven by the all-time high quarterly production in 2Q24, followed by July's output of dry freight and reefer containers exceeding 850,000 teu from factories in China. Manufacturers are reporting full orderbooks until mid-October.
The provision for containers in numbers and at locations where they are required has become a challenge because of the strong exports from Asia, congestion at large container transhipment hubs and declining container productivity due to the extended voyage caused by the Red Sea crisis.
In particular, the availability of 40ft high-cube containers, which are the workhorses of the industry, has become increasingly tight with more boxes needed to move the same volume of cargo. In the first seven months of 2024, 1.4 million units were delivered, up from just 125k units in the same period of 2023, indicating a tenfold surge year on year.
More information:
Drewry
www.drewry.co.uk