Drewry World Container Index drops 10% in second straight week

The Drewry World Container Index dropped 10% to $2,212 per 40-foot container this week. The decline marks the second consecutive week of falling rates.

The drop stems primarily from weakening rates on Transpacific and Asia-Europe trade routes.

Spot rates from Shanghai to New York fell 11% to $3,191 per 40-foot container. Shanghai to Los Angeles rates decreased 12% to $2,546 per container.

Carriers increased blank sailings this week to counter softening demand. The Chinese New Year cargo rush has ended, leaving reduced shipping volumes in its wake.

Drewry expects freight rates to decline further in the coming weeks.

Asia-Europe routes continued their downward trend for the second straight week. Shanghai to Rotterdam rates dropped 9% to $2,510 per 40-foot container. Shanghai to Genoa fell 8% to $3,520.

Carriers are adopting conflicting strategies for the Suez Canal amid the declining rates. CMA CGM is switching three Asia-Europe services from the Suez route to the Cape of Good Hope route. Maersk plans to resume its scheduled service from India to the US East Coast via the canal starting January 26.

These divergent operational decisions mean effective shipping capacity will return to the market gradually rather than all at once. This measured approach allows carriers to assess risk and adjust their networks carefully. It also prevents a catastrophic collapse in spot rates.

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