Overall
The latest Drewry WCI composite index per 40ft container is 64% below the previous pandemic peak in September 2021, but it is 160% 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 1%. Rates from Shanghai to Los Angeles decreased 2% and Shanghai to New York declined by 5%. Drewry expects a continued decline in rates for Asia-to-Europe routes due to weaker demand. Meanwhile, rates for Transatlantic and Transpacific Headhaul trade routes are expected to rise, driven by labor strikes and the impact of China’s Golden Week holiday.
ILA Work Stoppage
Dockworkers have officially gone on strike at 36 major U.S. East and Gulf Coast ports, halting nearly half of the country’s trade and causing immediate disruptions to supply chains. The strike could cost the economy between $3.8 billion and $4.5 billion per day. Key sectors, including container operations and auto shipments, are at a standstill. As the strike persists, concerns are rising about potential shortages, inflationary pressures, and long-term impacts on U.S. supply chains heading into the holiday season.
Ocean – TPEB
Demand is down with no pre-Golden Week peak. Rates extended until October 14, with possible surcharges for East/Gulf Coast port stoppage. Peak Season Surcharges remain unchanged through September.
Ocean – FEWB
Demand continues to decline, with floating rates dropping sharply in September. Carriers are adjusting rates proactively. Equipment shortages are improving, but some ports face sporadic issues due to COGH rerouting.
Ocean – TAWB
Carriers have announced GRIs, RRIs, and PSSs for October 1. Potential work stoppage disruption surcharges are in place. A 1-day strike could take 6 days to clear, while a 2-week strike may require up to 4 months to recover. No equipment shortages reported in Southeast Europe.