A recent Drewry report showed that the World Container Index’s composite index, an average of spot freight rates on 11 global East-West routes connecting Asia, Europe and the US, and the only weekly container pricing index which is independent of carriers and government authorities, on March 10, 2016 reached a record low of US$701 per 40-foot container.
This was the lowest reading since the World Container Index starting tracking weekly transatlantic, transpacific and Asia-Europe rates in June 2011.
Also today, the index rate assessments for the Shanghai-Rotterdam and the Shanghai-Genoa routes fell to all-time lows of US$354 and US$341 per 40ft box, respectively, while the latest Shanghai-Los Angeles rate of $878 per 40-footer was marginally higher than the record low for that route.
“The World Container Index’s composite index is now 60% lower than the average of the past 5 years and has decreased by 62% in the past year,” said Richard Heath, director of WCI.
Philip Damas, director at Drewry, which jointly owns WCI alongside Cleartrade Exchange, said: “Rate reductions are spreading across all routes, as the shipping market continues to soften. This is good news for shippers’ cost budgets, as the latest average index value of $701 per 40ft represents an expense of less than 10 cents per km and makes products competitive even in remote markets.”