According to Drewry, the 3% fall in its WCI marks a significant shift from the heights reached during the pandemic, but also continues to reflect a much higher level than pre-pandemic norms.
The current WCI is now 47% below its peak of $10,377 in September 2021, yet it remains 291% above the average rate of $1,420 recorded in 2019.
This suggests that while the container shipping market has cooled considerably from the unprecedented highs of the COVID-19 pandemic, rates are still far from returning to their pre-pandemic baseline.
Drewry’s World Container Index decreased 3% to $5,551 per 40ft container and routes from Shanghai decreased up to 4% this week. View our detailed assessment at: https://t.co/TD7Z9TzXVx#shipping #containers #logistics #SupplyChain #freightrates pic.twitter.com/6doAIXwnCs
— Drewry (@DrewryShipping) August 8, 2024
The year-to-date average for the composite index stands at $3,996 per 40ft container, which is $1,204 above the 10-year average of $2,791. This 10-year average, however, has been notably inflated by the extraordinary conditions experienced between 2020 and 2022.
Freight rates on key routes saw varying trends, with significant drops on routes from Shanghai. Rates from Shanghai to Los Angeles and Shanghai to Genoa both fell by 4% and stand at $6,501 and $7,309 per 40ft container, respectively. Similarly, rates from Shanghai to Rotterdam and Shanghai to New York decreased by 3%. The former is at $7,929 while the latter figure is $8,931.
In contrast, routes from Rotterdam to New York and Rotterdam to Shanghai experienced a 1% increase. The rates are now at $1,967 and $630 per 40ft container, respectively. Meanwhile, rates from Los Angeles to Shanghai and New York to Rotterdam remained stable.
Drewry analysts suggest that while spot rates may have reached their peak, ongoing disruptions in global shipping are likely to maintain a floor under current rates, preventing a more significant decline in the near term.
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