The containership freight market is going through a period of prolonged recession, with freight rates on the main trade routes recording new “dips” on a weekly basis.
Specifically, Drewry’s World Container Index (WCI) retreated to $/FEU for the week ending Thursday, September 25, recording a weekly decline of around 8%. As a result, the index has recorded a decline for the 15th consecutive week and is now at levels 52% lower on an annual basis.
Regarding specific routes, spot freight rates decreased on both Pacific routes and Asia-Europe routes. In particular, the most significant changes were recorded on the Shanghai-Los Angeles and Shanghai-Rotterdam routes, where freight rates decreased on a weekly basis by 10% and 9% respectively.
Finally, Drewry estimates that the supply-demand balance in the containership market will weaken again in the coming quarters, which will cause a contraction in spot freight rates.
