Drewry Container Index slips below $2,000 per FEU

The latest update to WCI shows the latest figures for rates that continued to fall over the past year; This week's 2% drop to $1,997.22 sends the index down 79% from the same week a year ago.

The index is now down 81% from its September 2021 peak of $10,377 and 26% below the 10-year average of $2,693, Drewry said. While below the 10-year average, the latest rates are still 41 percent higher than the pre-pandemic rates of $1,402 seen in 2019.

The update comes as the container lines release their annual profit reports for 2022, boasting record-breaking revenue and profit thanks to long-term contracts pegged at the highest levels of the market. Forecasts from container carriers are generally more bleak as spot rates continue to decline in 2022 and will be reflected in long-term rates as contract negotiations take place.

Among the major routes assessed by the index, the Shanghai-Rotterdam route saw the biggest drop in prices of the year, down 87% to $1,715/FEU.

During the week, freight rates for Rotterdam - New York fell 4% to $6,010/FEU, Shanghai - New York and Shanghai - Genoa each fell 3% to $3,125 and $2,655/FEU, respectively, a decrease of 3% on the Rotterdam – Shanghai route.

The Shanghai – Los Angeles, Los Angeles – Shanghai and New York – Rotterdam routes all held at last week's levels.

“Drewry expects small week-on-week reductions in rates in the next few weeks,” the company said.

Read more:

• Excess capacity could cause a new price war among container lines, warns Evergreen chairman

Source: Phaata.com (According to Drewry | SeatradeMaritimes)

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