Drewry’s World Container Index (WCI) rose by 8% this week to $/FEU. This marks the fourth consecutive week of increase for the index after experiencing 17 consecutive weeks of decline.
On the US route, influenced by the General Rate Increase (GRI) implemented from November 1st, the spot freight rate from Shanghai to Los Angeles increased by 9% to $/FEU; the freight rate on the Shanghai to New York route climbed by 8% to $/FEU. To counter the downward pressure on freight rates caused by overcapacity, shipping companies continue to push for rate increases. However, this upward trend is expected to be difficult to sustain. If no new freight rate adjustment measures follow, spot rates are likely to fall again.
European routes also showed an upward trend: the freight rate from Shanghai to Rotterdam rose by 9% to $/FEU; the freight rate from Shanghai to Genoa increased by 8% to $/FEU. It is worth noting that carriers on the Asia-Europe route have announced a new round of FAK rates effective from November 15th, aiming to create a favorable market environment for the upcoming annual contract negotiation season.
