The latest update to WCI shows the latest figures in a continued deterioration in rates over the past year; the 2% drop this week to $1,997.22 leaves the index 79% down on the same week one year ago.
Drewry said the index now sits 81% down from its September 2021 peak of $10,377 and 26% lower than the 10-year average of $2,693. While lower than the 10-year average, the latest rate remains 41% above the pre-pandemic rates of $1,402 seen in 2019.
The update comes as container lines release their annual earnings reports for 2022, boasting record-breaking revenues and profits fuelled by long-term contracts locked in at the market's peak. The outlook from container lines is generally bleaker as falling spot rates through 2022 are set to be reflected in long term rates as contract negotatiations come around.
Of the main routes assessed by the index, Shanghai – Rotterdam boasts the steepest on-year decline in rates, down 87% to $1,715 per FEU.
On the week, Rotterdam – New York freight rates dropped 4% to $6,010 per feu, Shanghai – New York and Shanghai – Genoa each slid 3% to $3,125 and $2,655 per FEU, respectively with a 3% drop also recorded on Rotterdam – Shanghai.
Shanghai – Los Angeles, Los Angeles – Shanghai and New York – Rotterdam routes were all around the previous week’s level.
“Drewry expects small week-on-week reductions in rates in the next few weeks”, the company said.