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Drewry: East-West Rates Days May Be Numbered

[ January 24, 2024   //   ]

Maritime research and consulting service providerDrewry said its World Container Index increased 23 percent to US$3,777 per 40-foot container for the week of Jan. 18.

Drewry Supply Chain Advisors’ WCI composite increased 82 percent when compared to the same week last year. Further, the FEU rate is the highest since October 2022 and 166 percent more than the pre-pandemic 2019 average.

For year-to-date, the average composite index is US$3,173 per 40 footer, US$495 higher than the 10-year average rate of $2,678, heavily influenced by the 2020-22 Covid period.

Drewry reported freight rates among key east-west routes:

• Shanghai to Los Angeles rose by 38 percent or US$1,070 to US$3,860 per FEU.

• Shanghai to New York increased 35 percent or $1,474 to $5,644 per 40-footer.

• New York to Rotterdam rates inched up 2 percent or US$9 to US$608 per FEU.

• Los Angeles to Shanghai rates slipped 1 percent to US$762 per FEU.

• Rotterdam to New York remained stable.

Drewry said it anticipates east-west spot rates to increase in the coming weeks, as carriers opt for the Cape of Good Hope to avoid the Red Sea-Suze Canal due to safety concerns and rising risk premiums.

“This is causing severe schedule disruption, longer transit times and more cancellations from Asia in January,” Drewry said. “Growing demand ahead of the Lunar New Year, in three weeks, raises concerns about a shortage of empty containers in Asia and space availability on vessels.”

Drewry’s Cancelled Sailings Tracker for major east-west head-haul trades, effective Jan. 19, showed a 14 percent cancellation rate, with 55 percent of blank sailings on the transpacific eastbound, 34 percent on Asia-North Europe and Med, and 11 percent on the transpacific westbound trade.

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