DUBAI: The Drewry World Container Index (WCI), a composite index of container freight rates on eight major routes to/from the US, Europe, and Asia, decreased by 4% to US$3,824 per 40ft container this week. This level is still 88% higher than the same week last year. The decline this week comes after eight consecutive weekly gains.

Ocean freight rates saw significant increases during the last quarter of last year, ending the downward trend they had been on before that. Prices continued to rise, starting the new year with exceptional increases of over 100% on many routes.

The index level of US$3,824 per 40ft container is 169% higher than the 2019 average of US$1,420.

The average composite index since the beginning of the year is US$3,461 per 40ft container, which is US$778 higher than the 10-year average of US$2,684.

It is worth noting that average freight rates over the past few years have been inflated significantly during the COVID-19 pandemic between 2020 and 2022.

During the week, freight rates on Sha
nghai to Genoa decreased by 8%, or US$517, to US$5,848 per 40ft container, followed by rates on Shanghai to Rotterdam and Rotterdam to Shanghai, which decreased by 6% to US$4,661 and US$964 per unit, respectively.

Similarly, rates on Los Angeles to Shanghai decreased by 4%, or US$28, to US$734 per 40ft container.

On the other hand, rates on New York to Rotterdam increased by 3%, or US$20, to US$635 per container.

According to the Drewry index, freight rates on Shanghai to Los Angeles increased by 2%, or US$77, to US$4,421 per 40ft container, followed by rates on Rotterdam to New York, which improved by 1%, or US$13, to US$1,589 per container, while prices on Shanghai to New York routes remained stable.

Source: Emirates News Agency