Drewry WCI spikes as shipping industry braces for ILA port strike

06 Dec '24

2 min read

Drewry WCI spikes as shipping industry braces for ILA port strike

Pic: Adobe Stock

Insights

The Drewry World Container Index (WCI) rose 6 per cent to $3,533 per FEU as of December 5, 2024, following news of an upcoming ILA port strike in January 2025.
While rates between some routes have increased, those from Shanghai to Los Angeles and Rotterdam to Shanghai saw declines.
Drewry anticipates further hikes in the Transpacific sector due to the expected strike.

The Drewry World Container Index (WCI) composite index has jumped 6 per cent to $3,533 per 40-foot equivalent unit (FEU) on December 5, 2024, up from $3,331 per FEU the previous week. It is now 66 per cent below the pandemic peak of $10,377 in September 2021 but 149 per cent above the pre-pandemic average of $1,420 in 2019. This increase followed the announcement of an impending ILA port strike in January 2025.

The average year-to-date (YTD) composite index stands at $3,958 per FEU, which is $1,104 higher than the 10-year average of $2,854, a figure skewed by the exceptional 2020-22 COVID period.

Freight rates from Shanghai to Genoa have surged by 22 per cent, or $1,006, to $5,496 per FEU, and those from Shanghai to Rotterdam have spiked by 19 per cent, or $778, to $4,775 per FEU. Similarly, rates from New York to Rotterdam have risen modestly by 2 per cent, or $18, to $807 per FEU.

Conversely, rates from Shanghai to Los Angeles have decreased by 12 per cent, or $531, to $3,719 per FEU. Rates from Rotterdam to Shanghai and Rotterdam to New York have each dropped by 1 per cent to $514 and $2,649 per FEU, respectively, while rates between Los Angeles to Shanghai and Shanghai to New York have remained stable.

Drewry anticipates a rise in rates on the Transpacific trade in the coming week due to the looming ILA port strike in January 2025 and the expected surge in shipments before the strike commences.

Fibre2Fashion News Desk (KUL)

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