The Drewry World Container Index (WCI) has registered its third straight week of increases, rising 4% to $1,822 per 40ft container. This follows a sustained period of decline that spanned 17 consecutive weeks, according to the latest data released by Drewry.
This recent momentum is being primarily driven by rate increases on key East-West routes, fueled by carriers attempting to establish a higher base ahead of crucial annual contract negotiations.
The week saw notable increases across major trade lanes:
Transpacific Trade: Spot rates from Shanghai to Los Angeles climbed 6% to $2,438 per 40ft container. Rates from Shanghai to New York rose 4% to $3,568.
Asia-Europe Trade: Spot rates from Shanghai to Rotterdam increased 3% to $1,795, while rates to Genoa saw a 5% increase, reaching $1,955.
The current rate hike is attributed to the implementation of General Rate Increases (GRIs) and increased Freight All Kinds (FAK) rates, particularly on the Asia-Europe route, effective November 1st. This strategic move aims to boost spot rates before the new annual contract negotiation season begins.
“The recent upward trajectory in the WCI reflects carriers’ determined efforts to stabilize the market and achieve better leverage ahead of 2024 contract discussions,” said a Drewry analyst. “While we anticipate a slight continuation of this trend next week due to the new GRIs, the current market fundamentals suggest this momentum will be short-lived, with rates likely to soften again soon after.”
Drewry’s Container Forecaster reinforces this cautious outlook, projecting that the supply-demand balance will weaken over the next few quarters, leading to an eventual contraction in spot rates.
The Drewry World Container Index remains the go-to, independent, global reference for index-linked contracts used by shippers and carriers worldwide.
