Overall
The latest Drewry WCI composite index per 40ft container is 54% below the previous pandemic peak in September 2021, but it is 236% more than the average 2019 (pre-pandemic) rate. Additionally, the average index for the year-to-date significantly exceeds the 10-year average, highlighting the lasting impact of the exceptional conditions during the 2020-2022 period.
Freight rates between various ports have shown diversity; rates from Rotterdam to New York increased 16%. Rates from Shanghai to Los Angeles decreased 3% and Shanghai to New York declined by 2%. Despite the looming threat of an ILA port strike, transpacific Eastbound freight rates have seen a slight dip this week. Drewry expects Asia-Europe rates to decline in the upcoming weeks.
Ocean – TPEB: Departures from Asia remain strong, supported by extra loader capacity, but softening demand is expected in the coming weeks due to healthy inventory levels. Structurally blank sailings from Cape of Good Hope (COGH) routings and port congestion may cause further delays. Carriers are preparing for Golden Week by implementing blank sailings in Weeks 38-41, potentially leading to schedule changes. The September 1 General Rate Increase (GRI) was withdrawn, extending rates from the end of August. Discussions about the Peak Season Surcharge (PSS) remain unchanged.
Ocean – FEWB: Demand has slowed, and more capacity is available in September than August. Floating rates have dropped further, with the Shanghai Containerized Freight Index (SCFI) falling by 12% in Week 36, the largest shift of 2024. Long-term named account business faces restrictions, and while equipment shortages are improving, certain container types and weight restrictions may still cause issues.
Ocean – TAWB: Concerns over a potential work stoppage at U.S. East and Gulf Coast ports are rising, with contracts expiring on September 30. Carriers are maintaining high utilization, leading to rate increases in September, with a Peak Season Surcharge (PSS) expected in October. Equipment shortages remain a challenge in parts of Germany and the Hinterlands. Booking 2-3 weeks in advance is recommended to ensure space and equipment availability.