Drewry: World Container Index falls 10.5% this week

The World Container Index (WCI), a composite of container freight rates on eight major routes to/from the United States, Europe and Asia, is also down 16.2 percent from the equivalent period in 2016, according to Drewry.    The World Container Index, a composite of container freight rates on eight major routes to/from the United States, Europe and Asia, fell 10.5 percent from last week to $1230 per 40 ft. container (FEU) as of Nov. 16, according to Drewry Shipping Consultants, which assesses the index.
   The composite index is also down 16.2 percent from the equivalent period in of 2016, Drewry said.
   The WCI’s average composite index so far in 2016 stands at $1,493 USD per FEU, which is $113 lower than the five-year average of $1,606 per FEU, according to Drewry.
   “Spot rates are declining steeply on the crucial East-West routes, and carriers have not pushed for mid-November rate hikes,” Drewry explained in a statement.
   The WCI, assessed by Drewry on the Shanghai-Rotterdam route, lost $195 from last week to reach $1,364 for a 40 ft. box, with rates 22 percent weaker than in the same period in 2016, the assessment states.
   Drewry also said the rate decline on transpacific trade is nerve wracking for carriers.
   The WCI on the Shanghai-Los Angeles route declined $205 to reach $1,352 per FEU this week, while rates on the Shanghai-New York trade plummeted $189 to $1,925 per FEU. Rates on these routes are 24 percent and 26 percent lower, respectively, than during the same period last year.