Drewry’s Global Container Index remains at $4,465 per 40-foot container, with drops of 10% between Shanghai and Genoa and 5% between Shanghai and Rotterdam
Spot rates for shipping containers between Asia and Europe have recorded further declines over the past week, in a scenario where carriers are gradually increasing transits through the Suez Canal and recovering capacity on these routes. Drewry’s Global Container Index (WCI) remained unchanged this week at $4,465 per 40-foot container.
The stability of the overall indicator responds to the different behavior of the main East-West corridors. While freight rates between Asia and Europe fell, trans-Pacific roads recorded increases that offset these declines in the overall index.
In the corridor between Asia and the Mediterranean, spot rates from Shanghai to Genoa decreased by 10% during the week, reaching $4,368 per 40-foot container. In the connection between Shanghai and Rotterdam, the decrease was 5%, with a price of $4,092.
Drewry links this evolution to lower freight demand and increased available capacity. According to data from its Container Capacity Insight service, scheduled departure cancellations on routes between Asia and Europe will increase from four this week to one next week, which will represent a greater capacity supply. The consultant expects that the rates of this corridor will register another slight decrease next week.
The evolution coincides with the increase in transits of container carriers through the Suez Canal. Drewry indicates that carriers are gradually recovering this route and foresees that more capacity will return to the corridor as services abandon detours through the Cape of Good Hope. Its Red Sea Diversion Tracker tracks transits through Suez twice-weekly compared to those made by the Cape Route.
The situation is different in trans-Pacific trade. Spot rates from Shanghai to Los Angeles increased by 5%, reaching $7,185 per 40-foot container, while freight rates between Shanghai and New York increased by 3% to $9,587. For next week, six departure cancellations on these roads have been announced, twice as much as planned during this week. Drewry expects trans-Pacific rates to remain relatively stable.
Available capacity also continues to be conditioned by incidents at other points on the maritime network. Chinese ports are experiencing congestion problems after several typhoons have passed through, while the Panama Canal faces drought-related restrictions. In early September, the number of daily transits is limited to 34 and is expected to drop to 32 by the end of the month, while the capacity for neopanamax vessels is limited to nine daily reservations.
Drewry had already recorded a 1% drop in its Global Container Index the previous week, to $4,473 per 40-foot container, then caused by declines in both trans-Pacific roads and connections between Asia and Europe.
source : elestrechodigital
