The Drewry's World Container Index (WCI) snapped its losing streak, registering a 3.8% weekly uptick for the index on the back of strong price upswings in the China-US trade route.
The Shanghai-Los Angeles (China-US West Coast) trade lane whose prices had taken the largest hit, appreciated 11% for the week to rise from US$1,674 to end at US$1,856.
The outperforming Shanghai- New York (China-US East Coast) trade lane registered yet another outperformance with a 12% bump-up as prices now touched US$2,849 for the week.
It must be noted that Freightos had also reported an uptick in prices earlier this week, owing to the General Rate Increases (GRIs) even as contracts for the year are being negotiated, reviewed and renewed.
Drewry's World Container Index registered its best-ever weekly movement since July 2021, a span of about 21 months, having had 15 consecutive weekly declines and registering the second-ever weekly uptick since March 2022.
While indices such as the Freightos Global Composite Index (FBX) and the Shanghai Containerized Freight Index (SCFI) witnessed upticks early in the month, an increase in rates helped Drewry's index to register the performance even as the lower base rate trade lanes in Los Angeles- Shanghai and New York-Rotterdam took a 4-5% beating.
It must be noted that Drewry's analysts have also revised their outlook on rates from "marginally decreasing" to "plateauing" to "projected increase in rates other than transatlantic rates" for the upcoming weeks. Container carriers have now upped up the ante by also eating into the minor breakbulk and loose bulk share.
It was also reported recently that the US inflation had eased to 5% for the month of March 2023, indicating more spending power for people.
Author of the article: Gautham Krishnan
Gautham Krishnan is a logistics professional with Fluor Corporation, in the area of project logistics and analytics, and has worked in the areas of Project Management, Business Development and Government Consulting