The global container shipping market continues to show signs of softening as the Drewry World Container Index (WCI) fell 1% this week to $1,919 per 40ft container. This marks the sixth consecutive week of decline, driven primarily by weakening rates across major Transpacific and Asia–Europe trade lanes.
In a reversal of traditional seasonal trends, spot rates are falling sharply during a period when the industry typically expects a surge in demand and pricing ahead of the Chinese New Year (CNY). Data suggests that rates peaked earlier than usual this year, and if current patterns persist, further decreases are anticipated.
1. Transpacific Routes While rates from Shanghai to Los Angeles remained stable at $2,219, other key routes saw a dip:
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Shanghai to New York: Decreased 1% to $2,782.
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Capacity Management: Carriers are aggressively managing supply-demand imbalances. A total of 31 blank sailings have been announced for the coming week on the Transpacific trade lane—a significantly higher volume than in previous years.
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Outlook: Drewry expects spot rates on these routes to continue to soften in the short term.
2. Asia–Europe and Mediterranean Routes The market remains volatile due to ongoing factory closures and shifting demand:
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Shanghai to Rotterdam: Fell 1% to $2,109.
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Shanghai to Genoa: Dropped 2% to $2,895.
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Capacity Management: Carriers have announced 8 blank sailings for the upcoming week to combat market volatility.
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Outlook: Drewry anticipates a slight but continued decline in rates for this region.
To stabilize the market, carriers are increasingly relying on “blank sailings” (canceled port calls) to artificially reduce capacity. Despite these efforts, the weakness in the market remains evident as the expected pre-holiday rally fails to materialize. “The current market weakness, characterized by falling spot rates during what is usually a peak demand period, indicates a significant shift in seasonal shipping cycles,” says Drewry’s latest Container Capacity Insight.
