Drewry WCI drops further on Chinese holiday, trend likely to continue

07 Feb '25

2 min read

Drewry WCI drops further on Chinese holiday, trend likely to continue

Pic: Adobe Stock

Insights

Drewry WCI dropped 2.70 per cent to $3,273 per FEU as of February 6, influenced by slow economic activity in China and higher shipping capacity.
Freight rates across various routes also saw reductions.
The index remains 68 per cent below its 2021 peak but is significantly higher than pre-pandemic levels.
Drewry anticipates a slight decrease in spot rates next week due to increased capacity.

The Drewry World Container Index (WCI) composite index declined further by 2.70 per cent to $3,273 per 40-foot equivalent unit (FEU) on February 6, 2025, down from $3,364 per FEU the previous week. The decrease in the WCI index was due to slow economic activities in China on the eve of the Chinese Lunar New Year holidays. Additionally, higher shipping capacity also dampened sentiments. Similar market conditions may persist during the next week.

The index was 68 per cent below its previous pandemic peak of $10,377 in September 2021 but was 130 per cent higher than the pre-pandemic average of $1,420 in 2019.

The year-to-date average composite index is $3,638 per 40-foot container, $760 higher than the 10-year average of $2,878 (inflated by the exceptional 2020-22 COVID period).

Freight rates from Rotterdam to New York decreased by 10 per cent, or $263, to $2,469 per 40-foot container, while those from Shanghai to Rotterdam fell by 5 per cent, or $149, to $3,125 per 40-foot container. Rates from Rotterdam to Shanghai and Shanghai to Genoa reduced by 4 per cent to $498 and $4,236 per 40-foot container respectively, with those from Los Angeles to Shanghai having decreased by 2 per cent, or $14, to $707 per 40-foot container.

Furthermore, rates from New York to Rotterdam, Shanghai to Los Angeles, and Shanghai to New York fell by 1 per cent to $833, $4,717, and $6,212 per 40-foot container, respectively.

Drewry expects spot rates to decrease slightly in the coming week due to increased capacity.

Fibre2Fashion News Desk (KUL)

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