The Drewry World Container Index (WCI) fell for the third week in a row, falling 1% to $2,216 per 40-foot container, due to lower prices on the Asia-Europe and Trans-Pacific and Trans-Atlantic trade routes. Despite rising fuel costs and ongoing geopolitical risks, prices remain under continued downward pressure due to excess capacity and falling demand.
Spot interest rates on the Asia-Europe trade route continued to decline this week, reflecting the continuing imbalance between supply and demand. Prices from Shanghai to Genoa and Rotterdam fell 1% to $3,039 and $2,127 per 40-foot container, respectively. In response to falling rates, carriers are managing capacity through empty sailings and capacity reductions. According to Drewry’s Container Based Insight, seven empty sailings have been announced for next week, with actual capacity expected to fall by 3% m/m in Asia-North Europe and 10% m/m in Asia-Med in May. Drury expects interest rates to remain stable next week.
On the Trans-Pacific trade route, prices fell this week due to market volatility amid uneven demand and capacity adjustments. Prices from Shanghai to New York fell 2% to $3,483 per 40-foot container, while prices from Shanghai to Los Angeles remained stable at $2,930 per 40-foot container.
According to Drewry’s Container Capacity Insight, eight empty sailings have been announced for next week. Effective capacity is expected to increase 11% m/m in Asia to ECNA and 6% m/m in Asia to WCNA in May. In addition, carriers are implementing Emergency Fuel Surcharge (EFS) and Peak Season Surcharge (PSS) effective May 1, with MSC increasing EFS on the Asia-USEC route from $430 to $644 per 40-foot container, and CMA CGM introducing a PSS of $2,000 per 40-foot container. Drury expects shipping rates to rise next week.
Source: Drewry World Container Index, Drewry Supply Chain Consultants
Tensions in the Middle East around the Strait of Hormuz remain under scrutiny, as carriers remain cautious about routing and operations. Carriers are also actively adjusting rates with more stable EFS, PSS and FAK levels, keeping the market engaged despite stable vessel movement.
Source: Drury
