Drewry WCI slides 9.6% as demand stays weak, capacity expands

21 Feb '25

2 min read

Drewry WCI slides 9.6% as demand stays weak, capacity expands

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Insights

Drewry World Container Index (WCI) fell 9.69 per cent to $2,795 per FEU on February 20, driven by weak global freight demand and increased shipping capacity.
The index is 73 per cent below its 2021 peak but remains 97 per cent above 2019 levels.
Freight rates from major routes, including Shanghai to New York and Los Angeles, declined, with further slight drops expected as capacity rises.

The Drewry World Container Index (WCI) composite index continued to decline sharply. It fell by 9.69 per cent to $2,795 per 40-foot equivalent unit (FEU) on February 20, down from $3,095 per FEU the previous week. Global container freight demand remained sluggish due to slow production activity in China following the Chinese Lunar New Year holidays. Increased shipping capacity also contributed to the downward trend in freight charges.

The index was 73 per cent below the pandemic peak of $10,377 in September 2021 and at its lowest level since May 2024. However, it remained 97 per cent higher than the pre-pandemic average of $1,420 in 2019.

The year-to-date (YTD) average composite index stands at $3,465 per 40ft container, $583 higher than the 10-year average of $2,881 (inflated by the exceptional 2020–22 COVID period).

Freight rates from Shanghai to New York decreased by 13 per cent, or $748, to $5,126 per 40ft container, while rates from Shanghai to Los Angeles dropped by 11 per cent, or $504, to $3,888 per 40ft container. Similarly, rates from Shanghai to Rotterdam declined by 9 per cent, or $269, to $2,618 per 40ft container, and those from Shanghai to Genoa fell by 8 per cent, or $326, to $3,837 per 40ft container. Meanwhile, freight rates from Rotterdam to New York decreased by 3 per cent, or $69, to $2,394 per 40ft container.

Freight rates from Rotterdam to Shanghai, Los Angeles to Shanghai, and New York to Rotterdam remained stable.

Drewry expects a further slight decline in spot rates next week as global container service capacity increases.

Fibre2Fashion News Desk (KUL)

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