The Drewry World Container Index (WCI), the leading independent global benchmark for container freight rates, has recorded a substantial 8% increase this week, climbing to $2,233 per 40ft container, according to the latest data released today by Drewry.
This notable rise is primarily attributed to significant surges on key Trans-Pacific routes. Freight rates from Shanghai to New York experienced the most dramatic increase, soaring by 19% or $704 to reach $4,350 per 40ft container. Similarly, rates from Shanghai to Los Angeles saw a sharp rise of 16% or $423, settling at $3,136 per 40ft container. In contrast, rates from New York to Rotterdam saw a marginal increase of 1% or $10, reaching $824 per 40ft container.
While this week’s jump signifies upward pressure, the current index remains significantly below the pandemic peak of $10,377 witnessed in September 2021, representing a 78% decrease. However, the current rate is still a notable 57% higher than the pre-pandemic average of $1,420 recorded in 2019.
The year-to-date (YTD) average of the composite index stands at $2,746 per 40ft container, which is $151 lower than the 10-year average of $2,896. Drewry notes that this longer-term average has been inflated by the exceptionally high rates experienced during the 2020-2022 COVID-19 pandemic period.
Interestingly, several other major routes experienced slight declines this week. Rates from Shanghai to Rotterdam decreased by 1% to $2,035 per 40ft container, while those from Shanghai to Genoa fell by 1% to $2,742 per 40ft container. The Rotterdam to New York route also saw a 1% decrease, settling at $1,961 per 40ft container. Rates on the Rotterdam to Shanghai and Los Angeles to Shanghai routes remained stable.
Looking ahead, Drewry anticipates further upward pressure on Trans-Pacific spot rates in the coming week. This expectation is largely attributed to recent US-China trade developments, which are predicted to lead to a shortage in shipping capacity on these key lanes.
For many years, the Drewry World Container Index has provided the shipping industry with crucial insights into the dynamic world of container freight rates, serving as a leading independent global benchmark for index-linked contracts.
