Drewry’s World Container Index dropped 1% this week to $1,933 per 40-foot container. The decline marks the fifth consecutive weekly decrease.
Weak demand on Transpacific and Asia-Europe routes drove the fall. Spot rates from Shanghai to Los Angeles slipped 1% to $2,214 per container. The Shanghai-New York route also fell 1% to $2,800.
Low cargo volumes ahead of factory closures prompted the decline. Carriers responded by canceling sailings. They announced 57 blank sailings over the next two weeks on Transpacific routes alone. This number significantly exceeds previous years, Drewry’s Container Capacity Insight shows.
Asia-Europe rates also continued their downward trend. Shanghai-Rotterdam rates fell 2% to $2,127 per container. Shanghai-Genoa dropped 3% to $2,965.
Carriers scheduled 24 blank sailings on Asia-Europe and Mediterranean routes for the coming two weeks. Market volatility and Chinese New Year factory shutdowns are driving the capacity adjustments.
The rate decline defies typical seasonal patterns. Industry observers had expected rising demand and higher rates before Chinese New Year. Instead, rates peaked earlier than usual this year. If normal seasonal trends hold, further decreases may follow in the coming weeks.
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