The Drewry World Container Index (WCI) has registered its second consecutive week of gains, increasing 3% to $1,746 per 40ft container. This marks a notable and intentional reversal following a prolonged decline that spanned 17 consecutive weeks.
Spot rates across major trade routes saw robust growth this week, driven by carrier-implemented General Rate Increases (GRIs) and strategic pricing maneuvers.
- Shanghai to Los Angeles climbed 4% to $2,290 per 40ft container.
- Shanghai to New York saw a strong 6% increase, reaching $3,420 per 40ft container.
The upward trend was equally strong on Asia-Europe routes:
- The rate from Shanghai to Rotterdam jumped 4% to $1,736.
- The Shanghai to Genoa rate rose 2% to $1,855.
Drewry anticipates a slight further increase in rates next week, as the market responds to GRIs implemented mid-October. Carriers are planning to reinforce this trajectory by implementing new GRIs on November 1 and November 15, aiming to secure higher prices before the current rate increases dissipate.
Carriers are under increasing pressure to lift prices ahead of the crucial annual contract negotiation season. To stabilize future pricing, new Freight All Kinds (FAK) rates have been announced effective November 1, ranging between $2,600 and $2,700 per 40ft container for key routes.
While the immediate market is showing signs of firming, Drewry’s analysis suggests caution regarding the long-term trend. The Container Forecaster anticipates that the global supply-demand balance will weaken over the next few quarters, which is expected to cause overall spot rates to contract following the immediate GRI-driven spike.
