Drewry’s World Container Index has continued its sharp decline this week, decreasing 13% to US$4168 per 40-foot container.
The latest composite index of US$4168 per 40-foot container is 60% below the previous pandemic peak of US$10,377 in September 2021.
Further, it is 193% more than the average pre-pandemic 2019 rate of US$1420.
The average composite index for the year-to-date is US$4128 per 40-foot container, which is US$1310 higher than the 10-year average rate of US$2818 (inflated by the exceptional 2020-22 covid period).
Freight rates from Shanghai to New York plunged 21% or US$1790 to US$6661 per 40-foot container. Similarly, rates from Shanghai to Rotterdam contracted 17% or US$1067 to US$5152 per FEU.
Likewise, rates from Shanghai to Genoa declined 10% or US$586 to US$5256 per 40-foot box. Also, spot rates from Rotterdam to New York dropped 9% or US$201 to US$2011 per 40-foot container.
Moreover, rates from Shanghai to Los Angeles fell 7% or US$403 to US$5627 per 40-foot box. Additionally, rates from New York to Rotterdam eased 4% or US$28 to US$704 per 40-foot container.
Rates from Rotterdam to Shanghai shrank 1% or US$6 to US$606 per FEU, while conversely, spot rates from Los Angeles to Shanghai increased 1% or US$4 to US$718 per 40-foot box.
Shippers are transferring their cargo from the US East Coast to the West Coast to avoid the planned ILA strike in October, resulting in a drop in demand.
This resulted in a huge 21% decline in East Coast spot rates.
Due to weak demand, Drewry expects East-West rates to decrease further in the upcoming weeks.
