Drewry’s World Container Index has experienced a notable decline of 7%, bringing the average cost to $2,368 per 40-foot container for the week. This marks a significant reduction from the peak of $10,377 recorded in September 2021, and it is the lowest figure reported since January 2024.
Despite this drop, the current rate remains 67% higher than the average of $1,420 registered in 2019, before the pandemic began. In detail, the average year-to-date composite index stands at $3,205 per 40-foot container, reflecting an increase of $321 over the 10-year average of $2,884, a statistic that is notably influenced by the exceptional price spikes experienced during the Covid period from 2020 to 2022.
Breaking down the freight rates, there has been a marked decline across various major routes. For instance, freight rates from Shanghai to Genoa have dropped by 11%, amounting to a reduction of $412, now costing $3,333 per 40-foot container.
Similarly, rates from Shanghai to Los Angeles saw an 8% decrease, lowering the price by $260 to $2,906 per 40-foot container. Rates to New York fell by 7% to $4,038, while those to Rotterdam decreased by 5% to $2,512.
On the other hand, some routes have seen slight increases. Rates from Rotterdam to Shanghai, New York to Rotterdam, and Rotterdam to New York all rose by 1%, now costing $490, $854, and $2,373 respectively per 40-foot container.
Meanwhile, shipping rates from Los Angeles to Shanghai have remained stable. As shipping capacity is predicted to increase, Drewry anticipates further declines in rates starting next week.