The World Container Index, a composite of container freight rates on 8 major routes to/from the US, Europe and Asia, fell by 6.3% to $1421.4/40ft container as of 20 Jul 2017, Drewry WCI assessment shows.
Two-year spot freight rate trend for the World Container Index:
The composite index is down by 6.3% this week and up by 15% from the same period of 2016.
The average composite index of the WCI, assessed by Drewry for year-to-date, is US $1,546/40ft container, which is $120 lower than the five-year average of $1,666/40ft container. It is also 15% higher than a year ago.
Despite peak season cargo surge, the spot rates dropped unexpectedly on the Shanghai-Rotterdam route, which fell by $160 to $1,705 for a 40ft box this week. More rate hikes and prudent supply during the peak season should lift rates from August. On the other hand, a slow start to the peak season is weighing down the Transpacific eastbound rates. The spot rates from Shanghai to New York lost $183 to reach $2,202 for a 40ft box and the rates from Shanghai to Los Angeles dropped by $71 to $1,242.
Drewry freight rate assessments on eight major East-West trades: