London, UK, 10 March 2016 – 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, reached a record low of US$701 per 40-foot container today. 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.”
The World Container Index is the only weekly container pricing index which is independent of carriers and government authorities.