The Drewry World Container Index (WCI) recorded its first decline in five weeks, falling 5% to $1,859 per 40ft container. The decrease was primarily driven by a sharp correction in Transpacific spot rates following the end of the peak retail shipping season.
Spot rates on the crucial Transpacific Headhaul routes experienced significant double-digit decreases this week. Rates from Shanghai to New York plummeted 15% to $3,254 per 40ft container, and the rates to Los Angeles dropped 12% to $2,328. Carriers’ recent attempts to sustain higher rates using General Rate Increases (GRIs) proved short-lived, with the softening of rates attributed to waning demand as retailers complete their holiday inventory imports. Drewry anticipates rates will either soften slightly or hold steady next week.
In contrast to the Transpacific market, the Asia–Europe trade lane saw moderate increases. Spot rates from Shanghai to Genoa rose 4% to $2,193 per 40ft container, and rates from Shanghai to Rotterdam increased 3% to $2,028. Carriers on this route are strategically pushing to elevate spot rates by introducing higher FAK (Freight All Kinds) rates, set to take effect mid-month, ahead of the new annual contract negotiation season.
Looking at the broader forecast, Drewry’s Container Forecaster indicates that the supply-demand balance is expected to weaken in the coming quarters, a trend that would be accelerated if normal Suez Canal transits are fully restored.
