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Drewry's WCI drops 4%; spot rates continue rally, says Xeneta

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Logistics Update Africa News
Drewry's WCI drops 4%; spot rates continue rally, says Xeneta

Drewry's composite World Container Index (WCI) declined 4.1 percent to $8,470.45/40ft container this week. The index, however, remains 74 percent higher than a year ago.

The average composite index of the WCI, assessed by Drewry for year-to-date, is $9,285/40ft container, which is $6,130 higher than the five-year average of $3,156 per 40ft container.

Freight rates on Shanghai–Rotterdam dropped 8 percent ($1,029) to $11,192/40ft box. FAK rates on Shanghai–Los Angeles and Rotterdam–Shanghai fell 2 percent each to $9,926 and $1,490 per 40ft box, respectively. Rates on Rotterdam–New York increased 5 percent to $6,793/FEU.

Drewry is expecting spot rates to remain stable in the coming week. Lars Jensen, a leading expert in the container shipping industry, had this to say: "The data therefore shows that the rates this week continue to decline at a slower pace than normal. In turn this means that the market is stronger than usual at this time of the year. "The only reason why the rate declines look spectacular is of course the sheer numerical size – a 1,000 USD/FFE drop is certainly massive compared to normal market conditions. But conditions are not normal and compared to the prevailing rate levels such a decline is smaller than what could have been expected."


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