The Drewry World Container Index (WCI) decreased 5% to $2,107 per 40-foot container this week. The decline marks the third consecutive week of falling rates, primarily due to drops on Transpacific and Asia-Europe trade routes.
Transpacific Rates Drop Ahead of Chinese New Year
Spot rates on Shanghai to New York decreased 7% to $2,969 per 40-foot container. Rates on Shanghai to Los Angeles fell 4% to $2,442 per 40-foot container.
Carriers announced 63 blank sailings in February, up from 27 in January. Demand remains weak ahead of the Chinese New Year factory closure.
Drewry expects spot rates to continue decreasing in coming weeks.
Asia-Europe Routes Show Continued Weakness
Spot rates on Asia-Europe trade routes continued falling for the third consecutive week. Rates on Shanghai-Rotterdam dropped 5% to $2,379 per 40-foot container. Rates on Shanghai-Genoa fell 6% to $3,293 per 40-foot container.
Carriers are adopting divergent strategies for the Suez Canal amid declining rates. CMA CGM is withdrawing its Asia-Europe services from the region. Maersk plans to resume its scheduled service from India to the US East Coast via the canal.
The conflicting operational decisions suggest effective shipping capacity will be reintroduced to the market gradually rather than all at once. This “drip-feed” approach allows carriers to carefully assess risk and adjust their future networks. The strategy prevents a catastrophic collapse in spot rates.
