Drewry WCI drops 2.4% amid slowing global demand & shifting dynamics

29 Nov '24

2 min read

Drewry WCI drops 2.4% amid slowing global demand & shifting dynamics

Pic: Adobe Stock

Insights

Drewry WCI fell 2.40 per cent to $3,331 per 40-foot container on 28 November 2024, marking a 68 per cent drop from the pandemic peak but remaining 134 per cent above pre-pandemic levels.
Key freight routes saw rate decreases, while some remained stable.
The year-to-date average is $3,966 per FEU, significantly above the 10-year average.
Drewry predicts stable spot rates in the coming week.

The Drewry World Container Index (WCI) composite index declined further by 2.40 per cent to $3,331 per 40-foot container on November 28, 2024, down from $3,413 per 40-foot equivalent unit (FEU) the previous week. This marks a 68 per cent decrease from the pandemic peak of $10,377 in September 2021 but remains 134 per cent higher than the pre-pandemic average of $1,420 in 2019. The WCI decline reflects shifting geopolitical dynamics and reduced demand for international shipping services.

The year-to-date (YTD) composite index averages $3,966 per FEU, which is $1,116 higher than the 10-year average of $2,850 (inflated by the exceptional COVID-19 period from 2020 to 2022).

The freight rates from Shanghai to Los Angeles decreased 5 per cent or $238 to $4,250 per FEU and those from Shanghai to Rotterdam fell 2 per cent or $74 to $3,997 per FEU. Likewise, rates from Shanghai to Genoa, Shanghai to New York and New York to Rotterdam shrank 1 per cent to $4,490, $5,182 and $789 per FEU, respectively.

Meanwhile, rates from Rotterdam to Shanghai, Los Angeles to Shanghai and Rotterdam to New York remained stable. Drewry also expects spot rates to remain stable next week.

Fibre2Fashion News Desk (KUL)

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