The World Container Index published by Drewry ended the week of 20 August with a composite container spot freight rate index of $4,526 per feu, up 4% on the previous seven days, equivalent to an increase of $187. The entire movement in the indicator was attributable to routes from China to the United States, the only lanes in the basket to record significant increases. Year on year, the index, used by procurement departments as a benchmark in contract negotiations, was up 101%.
The most expensive route remains Shanghai-New York, which rose to $9,507 per feu, with a weekly increase of 9%, or $801, also the largest rise across the entire basket. On the route to the west coast, Shanghai-Los Angeles also gained 9%, or $558, reaching $6,802 per feu. This route recorded the largest year-on-year swing, at 182%, compared with 175% on the route to New York.
Behind the transpacific surge are demand that remains solid and restrictive capacity management by carriers. Drewry’s Container Capacity Insight counts seven cancelled sailings already announced for the following week, while in August the capacity offered fell by 9% month on month on routes from Asia to the US east coast and by 0.4% on those serving the west coast. This contraction is compounded by Panama Canal surcharges announced by several carriers on Asia-east coast and Asia-US Gulf links, coming into force in September.
The Asia-Europe corridor is moving in the opposite direction. Shanghai-Genoa fell below the $5,000 threshold to $4,955 per feu, with a weekly decline of 2%, or $125, the sharpest correction in the basket, while Shanghai-Rotterdam lost 1%, or $24, stopping at $4,401 per feu. However, the comparison with 12 months earlier remains strongly positive on both routes, at 66% and 48% respectively. Here too, carriers have announced two cancelled sailings for the following week.
Return routes to Asia remain at contained levels and with minimal fluctuations. Los Angeles-Shanghai recorded the smallest absolute change in the entire basket, down just $8, or 1%, to $822 per feu, while still maintaining a year-on-year increase of 15%. Rotterdam-Shanghai moved in the opposite direction to the main route, rising 3% to $591 per feu, with an increase of $17 and a 24% gain over 12 months.
The transatlantic trade, meanwhile, continues to consolidate at higher levels. Rotterdam-New York rose 5% to $3,039 per feu, with an increase of $155 and a year-on-year rise of 56%. The reverse journey, from New York to Rotterdam, gained 3% to $1,126 per feu, up $38, with a 34% increase year on year.
Meanwhile, port congestion has eased without returning to normal. In week 33, average vessel waiting times were 32.3 hours in Shanghai and 25 hours in Rotterdam, lower than before but still high compared with normal operating conditions. For the coming week, Drewry expects freight rates to remain broadly stable on both Asia-Europe and the transpacific, where reduced capacity should support the levels reached.
The overall east-west market picture remains uncertain because of a combination of geopolitical and operational factors. The memorandum of understanding between the United States and Iran on the Strait of Hormuz has expired without a stable solution, while some carriers are gradually resuming selected transits through the Red Sea and the Suez Canal after more favourable safety assessments. Congestion at Asian and European ports and strikes at German terminals continue, in the meantime, to affect schedule reliability. Drewry recommends that shippers book early and allow additional time margins to reduce the risk of cargo being reassigned to later sailings and of delays in transit.
