Drewry WCI dips 2% as peak season momentum moderates

The Drewry World Container Index (WCI) dipped 2 per cent for the week ended July 16. The decrease indicates that the strong upward momentum seen during the peak season is beginning to subside. The index fell to $4,547 per FEU (forty-foot equivalent unit), down from $4,639 per FEU a week earlier.On the Transpacific trade route, rates from Shanghai to Los Angeles decreased 3 per cent to $6,272 per 40-foot container, while those from Shanghai to New York remained stable at $7,879 per 40-foot container. According to Drewry’s Container Capacity Insight, nine blank sailings are scheduled on the Transpacific route next week, signalling a reduction in overall capacity. With the rush for front-loading ahead of the US tariff deadline easing, carriers’ proactive capacity management should prevent spot freight rates from falling significantly. As a result, Drewry projects that freight rates will remain steady through next week.

The Drewry World Container Index fell 2 per cent to $4,547 per FEU in the week ended July 16, signalling that peak-season freight momentum is easing.
While rates declined on major Asia-US and Asia-Europe routes, Drewry expects prices to remain stable next week as carriers manage capacity, despite moderating demand and ongoing geopolitical risks.

Carriers had announced higher FAK (Freight All Kinds) rates ranging from $7,900 to $8,500 per 40-foot container for July 15, but these increases failed to hold this week. On the Asia-Europe trade route, spot rates declined 3 per cent to $6,300 per 40-foot container from Shanghai to Genoa, while those from Shanghai to Rotterdam dropped 1 per cent to $4,873. Furthermore, congestion at European ports is easing, highlighted by a 33-hour week-on-week decrease in average vessel waiting times at Genoa Port. Looking ahead, Drewry expects freight rates to remain stable next week.

Freight rates from New York to Rotterdam increased 1 per cent to $1,037 per FEU, while rates from Rotterdam to New York decreased 2 per cent to $2,667 per FEU. Rotterdam-Shanghai rates decreased 1 per cent to $605 per FEU, while Los Angeles-Shanghai rates remained steady at $825 per 40-foot container.

US-Iran tensions continued, with threats to shipping through the Bab el-Mandeb Strait and uncertainty over potential US security charges for transits through the Strait of Hormuz, adding to global shipping risks. US tariffs are scheduled to expire on July 24, while potential new tariffs are expected to be implemented in early August. Meanwhile, early peak-season activity appears to be moderating, although capacity management and geopolitical disruptions continue to support freight rates.

Fibre2Fashion News Desk (KUL)