This week, global container shipping rates decreased as ongoing pressure on key Transpacific routes outweighed the efforts of carriers to stabilize prices before the annual contract negotiation season, according to the latest market review by Drewry.
The Drewry World Container Index dropped by 2% to $1,806 per 40-foot container for the week ending November 27, marking three weeks of continuous decline in the important Transpacific trade. Rates from Shanghai to New York decreased by 6%, reaching $2,735 per container, while shipments to Los Angeles lowered by 4% to $2,089.
As noted in the index report, "The decline was mainly due to falling rates on the Transpacific and Asia-Europe trade routes." This reduction occurs as blank sailings—canceled voyages by carriers to manage their capacity—are expected to decrease next week on Transpacific routes, which could increase available capacity and put more pressure on rates.
The Asia-Europe corridor, after experiencing six weeks of increasing rates, also saw a decline this week. Spot rates from Shanghai to Genoa and Rotterdam fell by 1% to $2,300 and $2,165 per container, respectively.
Even with the drop this week, carriers on the Asia-Europe route are striving to reverse the trend by introducing higher Freight All Kinds (FAK) rates, which will range from $3,100 to $4,000 per container starting December 1. This move comes at a strategic time just before the annual contract negotiation period, when shippers and carriers finalize longer-term pricing agreements.
Another issue affecting European operations is the ongoing national strike in Belgium, which has led to congestion at the Port of Antwerp. Drewry cautions that the situation may worsen as several carriers plan to resume transits through the Suez Canal, which could further strain port efficiency and increase spot rates due to delays.
Looking ahead, Drewry's Container Forecaster predicts that the supply-demand balance may weaken in the coming quarters, especially if normal operations in the Suez Canal resume. The outlook indicates that current rate pressures might continue as the industry adapts to seasonal demand changes and ongoing geopolitical uncertainties impacting major shipping routes.