The Drewry World Container Index (WCI) fell by 2% to $1,806 per 40-foot container. The main reason for this decline was the decrease in rates on the Transpacific and Asia-Europe trade routes.
Spot rates on the main Transpacific route continued to fall for the third consecutive week. Rates from Shanghai to New York fell by 6% to $2,735 per 40-foot container, while rates to Los Angeles fell by 4% to $2,089. According to Drewry’s Container Capacity Analysis, blank sailings on the Transpacific trade are expected to decrease next week, which could increase current capacity. Drewry expects a slight decrease in rates next week.
Spot rates on the Asia-Europe trade route, which had been rising steadily for 6 weeks, fell this week. Rates from Shanghai to Genoa and Rotterdam fell by 1% this week to $2,300 and $2,165 per 40-foot container, respectively. Carriers on this trade route are trying to increase spot rates by implementing higher FAK (Freight All Kinds) levels ranging from $3,100 to $4,000 per 40-foot container starting December 1st. This move aims to increase spot prices ahead of the upcoming annual contract negotiation season.
The national strike in Belgium disrupted port operations and increased congestion at the Port of Antwerp. This congestion is expected to worsen further as several shipping companies plan to return to the Suez Canal route. This situation will further strain port efficiency, leading to extended delays and rising spot rates.
Drewry’s Container Forecaster predicts that the supply-demand balance will weaken over the next few quarters, especially if normal transit through the Suez Canal resumes.
7DENIZ
