DREWRY's World Container Index (WCI), a composite of container freight rates on eight major trade lanes to/from the US, Europe and Asia, declined by 9.4 per cent in the week of November 9 to US$1374.8 per FEU.
Year-to-date the average composite index of the WCI declined nine per cent year on year to stand at $1,499 per FEU. The freight rate is also $111 lower than the five-year average of $1,610/FEU.
Rate gains on routes originating from Asia during the first week of November softened towards the second week. The World Container Index between Shanghai and Rotterdam lost $157 from the previous week to reach $1,559 per FEU, reported AJOT.
Transpacific rates in the week of November 9 also fell. The WCI between Shanghai and Los Angeles softened by five per cent or $77 from the previous week to $1,557 per FEU. Rates on this route are 20 per cent lower compared to the same period in 2016.
The decline was greater on the Shanghai-New York route, where rates fell by $290 or 12 per cent from the first week of November to reach $2,114 per FEU.
As shipping lines are expected to cancel their general rate increases (GRIs) planned for November 15, rates are likely to fall further this month.