- Transpacific rates fall 10% to Los Angeles and 8% to New York.
- Asia–Europe rates decline 9% on the Rotterdam route and 7% on the Genoa route.
- Carriers cut capacity ahead of China’s Golden Week slowdown.
The Drewry World Container Index (WCI) took a hit this week, dropping 8% to $1,761 for a 40ft container, marking the 15th consecutive week of decline. Rates on key trade routes, such as Transpacific and Asia–Europe, also saw a downward trend, reports Drewry.
Transpacific Rates Slide Further
Spot rates from Shanghai to Los Angeles plummeted by 10%, now sitting at $2,311 for a 40ft container, while rates from Shanghai to New York fell 8% to $3,278 for the same size container. The earlier momentum from General Rate Increases (GRIs) and blank sailings has diminished, leading to lower rates.
Asia–Europe Spot Rates Continue Decline
On the Asia–Europe routes, rates weakened again this week. The cost from Shanghai to Rotterdam dropped 9% to $1,735 for a 40ft container, and the rate from Shanghai to Genoa fell 7% to $1,990 for the same container size.
Carriers Cut Capacity Ahead of Golden Week
In anticipation of a slowdown in demand during China’s Golden Week holiday, ocean carriers are scaling back vessel capacity. Factories will be closed for eight days starting October 1, which is expected to push freight rates even lower in the coming week.
Outlook Points to Weaker Supply-Demand Balance
According to Drewry’s Container Forecaster, the supply-demand balance is projected to weaken over the next few quarters, with spot rates likely to continue their downward trend.
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Source: Drewry
