The Drewry World Container Index (WCI), a composite measure of container freight rates, continued its upward trend for the third consecutive week. The index rose by 4.35 percent to $1,822 per 40-foot equivalent unit (FEU) on October 30, up from $1,746 per FEU the previous week, following a prolonged decline over 17 consecutive weeks.
Spot rates from Shanghai to Los Angeles increased 6 percent to $2,438 per 40-foot container, while rates to New York rose 4 percent to $3,568. On the Asia–Europe routes, rates from Shanghai to Rotterdam climbed 3 percent to $1,795 per 40-foot container, and from Shanghai to Genoa advanced 5 percent to $1,955 per 40-foot container.
Drewry expects a modest increase in rates next week, driven by the implementation of General Rate Increases (GRIs) on November 1. However, this momentum is likely to be short-lived, with rates anticipated to decline soon afterward. Carriers on the Asia–Europe trade route are attempting to lift spot rates by introducing higher Freight All Kinds (FAK) rates effective November 1, aiming to strengthen prices ahead of the new annual contract negotiation season.
Looking ahead, Drewry’s Container Forecaster anticipates that the supply-demand balance will weaken in the coming quarters, contributing to a further contraction in spot rates. In particular, additional rates for CAPE, PMAX, SMAX, and Handy vessels are expected to be halved in February due to weaker demand. February often follows major holiday periods in many regions, such as the Lunar New Year in Asia, which leads to reduced export shipments and lower cargo volumes.
