Drewry WCI Declines After Rapid Rise; Stability Anticipated

The Drewry World Container Index (WCI) has experienced a slight decline, dropping to $3,529 per 40-foot equivalent unit (FEU) as of December 12, 2024, down from $3,533 the week prior. This modest adjustment follows a sharp increase in freight rates, which had been influenced by potential disruptions from an upcoming port strike announced for January 2025.

Despite the overall dip in the index, specific freight routes are exhibiting a mix of upward and downward trends. Notably, freight rates have risen on key routes, including a 3 percent uptick from New York to Rotterdam, bringing costs to $830 per FEU. Similarly, routes from Shanghai to Rotterdam saw a 2 percent increase, now at $4,855 per FEU. Additional routes such as Rotterdam to Shanghai and Shanghai to New York registered slight increases of 1 percent, while a few routes, including Shanghai to Los Angeles, faced decreases.

Looking ahead, Drewry anticipates stability in freight rates for the upcoming week, following the recent fluctuations driven by the port strike announcement. The current WCI figure remains significantly lower than the peak experienced during the pandemic, which was $10,377 in September 2021, yet it is substantially higher—148 percent—compared to pre-pandemic averages of $1,420 in 2019. The year-to-date average stands at $3,949 per FEU, an increase of over $1,000 from the 10-year average.

As shippers navigate this complex environment, the focus remains on adapting to the changing dynamics of freight rates and the underlying challenges posed by global supply chain developments.