The Drewry World Container Index (WCI) has further declined, dropping by 3% this week to $2,091 per 40-foot container. This figure represents a significant 80% decrease from the pandemic peak of $10,377 recorded in September 2021. However, current rates remain 47% higher than the 2019 pre-pandemic average of $1,420.
The year-to-date (YTD) average of the composite index stands at $2,811 per 40-foot container, slightly lower than the 10-year average of $2,893. It’s important to note that this 10-year average has been inflated by the exceptionally high shipping costs experienced during the 2020-2022 Covid-19 pandemic period.
Breaking down specific trade lanes, most major routes witnessed a downward trend this week:
- Shanghai to Rotterdam: Rates decreased by 5%, or $110, to $2,202 per 40-foot container.
- Rotterdam to Shanghai: Rates fell by 4% to $464 per 40-foot container.
- Shanghai to Genoa: Rates also decreased by 4% to $2,889 per 40-foot container.
- Shanghai to New York: Rates saw a 3% drop to $3,500 per 40-foot container.
- Rotterdam to New York: Similarly, rates decreased by 3% to $2,041 per 40-foot container.
- Los Angeles to Shanghai: Rates experienced a 2% decline, or $16, to $689 per 40-foot container.
- Shanghai to Los Angeles: Rates edged down by 1%, or $27, to $2,590 per 40-foot container.
Bucking the trend, one route saw an increase:
- New York to Rotterdam: Rates rose by 2%, or $17, to $842 per 40-foot container.
Looking ahead, Drewry anticipates a continued decline in freight rates in the coming week. This expectation is largely attributed to the prevailing uncertainty surrounding reciprocal tariffs, which are likely to impact global trade volumes and, consequently, shipping demand.
