Drewry: World Container Index Moved Higher Last Week

The World Container Index (WCI) rose 1% to $4,297 per 40ft container last week, marking a turnaround after three weeks of falling rates. This rebound was driven by higher prices on Transpacific routes, specifically spot rates from Shanghai to New York, which surged 4% to $7,893 and from Shanghai to Los Angeles, climbing 3% to $5,894 per 40ft container.

Despite port congestion in central and southern China, carriers managed to maintain volumes into August and successfully implemented Guaranteed Rates Incentives (GRIs). Drewry's Container Capacity Insight indicated that there are eight blank sailings scheduled for the following week, remaining unchanged from this week, suggesting stable market capacity. Consequently, Drewry anticipates reduced volatility in rates during the upcoming week.

In contrast, the Asia–Europe trade route saw stable freight rates. The spot rate from Shanghai to Genoa dropped 2% to $5,506 and remained steady at $4,653 per 40ft container for Rotterdam. With three blank sailings observed and a similar number planned for the next week, Drewry predicts that freight rates will remain steady in the following week.

However, the East–West container freight market remains volatile due to tensions in the Middle East, new US tariffs, and port congestion in Asia. The recent resumption of hostilities between Iran and the US, along with the introduction of Emergency Fuel Surcharges (EFS) by carriers starting in August, have heightened uncertainty. Drewry expects global trade policies, geopolitical events, and port congestion to continue shaping market conditions and freight rate trends in the coming weeks.