Drewry: World Container Index Down 2% Last Week

The World Container Index (WCI) experienced a 2% decline last week, settling at $4,351 per 40-foot container. This decrease was primarily attributed to reduced rates on the Transpacific and Asia-Europe trade routes as demand tapered off during China's Golden Week. Specifically, rates from Shanghai to Los Angeles and New York each dropped by 3% and 2% respectively, while rates from Shanghai to Rotterdam fell by 2%.

The extended US-China trade truce and the end of the Chinese New Year holiday may help stabilize US-bound demand post-holiday. Drewry anticipates rates to remain stable next week. On the Asia-Europe route, rates from Shanghai to Genoa remained unchanged. However, carriers are attempting to bolster rates in the second half of October by introducing higher FAK rates, though the success of these efforts remains uncertain.

The sudden return to the Suez route poses the most significant threat to rate support efforts, which have declined for 13 consecutive weeks on the Asia-Europe trade. The slowdown in the East-West container freight market during China's Golden Week, due to factory closures and cancelled services, further contributed to the volatility in the market.