Drewry: Box Rates on East-West Routes above 5-Year Average

Image Courtesy: MSC

Spot container freight rates on the major East-West routes reached a 20-month high this week and have risen above the average of the last 5 years, according to shipping consultancy Drewry.

The latest weekly reading is USD 1,770/40ft container for the composite index, reflecting increases on individual lanes to USD 1,785 for the Rotterdam-New York index, up USD 4 this week, USD 2,210 for the Shanghai-Rotterdam index, representing a rise of USD 257, while the Shanghai-Los Angeles index was at USD 2,106, surging by USD 545.

On the back of January 1 general rate increase (GRIs), the World Container Index between Shanghai and Rotterdam rose by 13% to reach USD 2,210 this week. Drewry expects the volume upsurge on account of an early Chinese New Year to support further increases next week.

The last time the WCI composite index exceeded USD 1,700 per 40ft container was in March 2015, before the 2015/16 price war, Drewry said.

 

The World Container Index assessed by Drewry composite index, an average of spot rates on 11 transpacific, Asia-Europe and transatlantic routes, has now increased by 62% since the bankruptcy of Hanjin at the end of August 2016.

“With 2017 contract rates at risk of double-digit increases, now is the time to use the latest e-sourcing tools and strategies to help mitigate cost increases and to avoid a repeat of carrier service failures,” Philip Damas, head of the logistics practice of Drewry, said.

Share this article

Follow World Maritime News

In Depth>

Events>

<< Jun 2017 >>
MTWTFSS
29 30 31 1 2 3 4
5 6 7 8 9 10 11
12 13 14 15 16 17 18
19 20 21 22 23 24 25
26 27 28 29 30 1 2

DSM17

Donsö Shipping Meet 2017 is an all inclusive exhibition. Meals, electricity, meeting schedule and banquette dinner is included…

read more >

TOC Europe

TOC (The Terminal Operations Conference) has long been considered best in class by container terminal operators and their suppliers…

read more >

Marine Philippines 2017

The 4th edition of PHILIPPINES MARINE 2017, SHIPBUILD PHILIPPINES 2017 and OFFSHORE PHILIPPINES 2017 is the only specialized Shipbuilding…

read more >

Bunkering Week 2017

IBC’s biennial Bunkering Week is back with its successful series of 3 co-located events: 8th Bunkering in Asia, 4th LNG Bunkering and EMTECH: Ship Emissions Technology Conference.

With a proven track record of bringing together top decision makers from various industry sectors, this remains the go to event for ship owners, fuel suppliers, traders and technology solution providers. Get in-depth and detailed market insights from experts who are taking the decisions, assess peer strategies and give shape to your own in this unrivalled gathering of shipping and marine fuel industry leaders.

Key Highlights for 2017:

* 3 Co-located Conferences

* 12+ Hours of Networking Time

* In-depth Review of Shipping Markets by Segment

* Ship Owner Positions on Emissions Compliance Scenarios

* Pricing Differentials and Availability across Different Fuels

* Technology and Analytics in Fuel Management and Emissions MRV

More info

read more >