Drewry WCI further rises 8.7% on tight capacity, strong demand

The Drewry World Container Index (WCI) continued to rise, driven by stronger demand and higher freight rates on Transpacific and Asia-Europe trade routes. The index increased 8.73 per cent to $4,530 per FEU (forty-foot equivalent unit) for the week ended July 02, up from $4,166 per FEU a week earlier.On the Transpacific trade route, spot rates continued to strengthen, with those on Shanghai to New York rising 11 per cent to $7,902 per 40ft container and Shanghai to Los Angeles increasing 10 per cent to $6,349 per 40ft container. According to Drewry’s Container Capacity Insight, eight blank sailings have been announced on the Transpacific trade route for the next week, reflecting tight capacity. Carriers continue to announce GRIs (General Rate Increases) and PSS (Peak Season Surcharge) for July in anticipation of strong cargo volumes, with HMM introducing a PSS of $3,000 per 40ft container effective July 15. Drewry expects rates to rise further in the coming weeks.

Drewry’s World Container Index rose 8.73 per cent to $4,530 per FEU, driven by higher Transpacific and Asia-Europe freight rates amid strong demand and tight capacity.
Carriers continue to announce rate increases and surcharges, with Drewry expecting further gains.
Geopolitical risks in the Middle East continue to support elevated shipping costs.

On the Asia–Europe trade route, spot rates increased this week as carriers implemented higher FAK (Freight All Kinds) rates and PSS amid strong peak season demand. Freight rates from Shanghai to Genoa rose 10 per cent to $6,360 per 40ft container and those from Shanghai to Rotterdam increased 7 per cent to $4,682 per 40ft container. According to Drewry’s Container Capacity Insight, only one blank sailing has been announced on the Asia to Europe trade route for the next week, as carriers maintain disciplined capacity management amid strong demand. Drewry expects rates to rise in the coming weeks.

Freight rates from New York to Rotterdam steadied at $1,015 per FEU, and Rotterdam to New York rates increased 1 per cent to $2,602 per FEU. Rotterdam-Shanghai rates steadied at $647 per FEU, while Los Angeles-Shanghai rates steadied at $828 per 40 ft container.

The East-West container freight market has remained resilient this year, supported by early peak season demand and higher shipping costs stemming from geopolitical disruptions. The interim US–Iran agreement has facilitated the reopening of the Strait of Hormuz, with vessel traffic recovering following the evacuation of stranded ships and the designation of authorised transit routes. However, security risks remain elevated after the suspension of ship escort operations following an attack on a containership near Oman. As a result, ongoing geopolitical tensions in the Middle East continue to underpin market uncertainty.

Fibre2Fashion News Desk (KUL)