The Drewry World Container Index (WCI) fell by 2% this week to $1,806 per FEU. This decline was primarily influenced by lower freight rates on the Trans-Pacific and Asia-Europe routes.
Spot rates on the key Trans-Pacific routes fell for the third consecutive week. The rate from Shanghai to New York dropped 6% to $2,735 per FEU, while the rate to Los Angeles fell 4% to $2,089 per FEU. According to the latest issue of Drewry’s *Container Capacity Weekly*, the number of blank sailings on the Trans-Pacific route is expected to decrease next week, potentially increasing available capacity. Drewry therefore predicts a moderate downward trend in freight rates over the coming week.
After six consecutive weeks of increases, spot rates on the Asia-Europe route fell this week. Rates from Shanghai to both Genoa and Rotterdam dropped by 1%, reaching $2,300 and $2,165 per FEU respectively. To boost freight rates ahead of the upcoming annual contract negotiation season, several carriers on this route have announced the implementation of higher FAK rates effective December 1st, setting the standard between $3,100 and $4,000 per FEU.
Operations at the Port of Antwerp have been disrupted and congestion has intensified due to a nationwide strike in Belgium. As some carriers plan to resume using the Suez Canal route, port congestion is expected to worsen further, leading to decreased operational efficiency and longer delays, which could subsequently push up spot rates.
Drewry’s *Container Forecaster* report indicates that the supply and demand balance will face pressure in the coming quarters. This pressure would become more pronounced if the Suez Canal returns to normal operations.
