The latest data from Drewry’s World Container Index (WCI) reveals a further softening of global container freight rates, with the composite index decreasing by 1% to $2,076 per 40ft container. This figure stands significantly lower, at 80% below the unprecedented peak of $10,377 witnessed in September 2021 during the height of the pandemic-induced supply chain disruptions.
Despite the recent decline, the current index remains 46% higher than the pre-pandemic average of $1,420 recorded in 2019, indicating a market that has adjusted to a new, albeit lower, equilibrium. The year-to-date average of the composite index sits at $2,773 per 40ft container, slightly below the 10-year average of $2,895, which was inflated by the exceptional freight rate volatility experienced between 2020 and 2022.
Analyzing specific trade lanes, Drewry’s WCI highlights a downward trend on key routes from Shanghai. Freight rates from Shanghai to Rotterdam saw a significant decrease of 7% or $156, settling at $2,046 per 40ft container. Similarly, rates from Shanghai to Genoa fell by 4% or $123 to $2,766 per 40ft container. Transatlantic routes also experienced declines, with rates from New York to Rotterdam and Rotterdam to New York both decreasing by 3% to $814 and $1,972 per 40ft container, respectively. The rate from Rotterdam to Shanghai also saw a minor decrease of 2% or $7 to $457 per 40ft container.
Conversely, some routes experienced upward pressure. Freight rates from Shanghai to Los Angeles increased by 5% or $123 to $2,713 per 40ft container, while those from Shanghai to New York rose by 4% or $146 to $3,646 per 40ft container. Additionally, rates from Los Angeles to Shanghai saw a modest increase of 2% or $17 to $706 per 40ft container.
Looking ahead, Drewry anticipates a period of reduced volatility in the coming week as carriers actively reorganize their capacity to align with a projected decrease in cargo bookings originating from China.
For many years, the Drewry World Container Index has served as a crucial and independent global benchmark for index-linked contracts within the shipping industry.
