Container spot freight rates are up for the first time in 43 weeks

Drewry’s WCI (World Container Index) rose to 0.7% for the first week of Jan 2023, showing a fall in the index for the consecutive 43rd week. At present, WCI stands at $2135 dropping from a high of $ 10,377 per FEU in Sep 2021. However, the index is currently 10 years average low per few indicating a return to normal prices as indicated by Drewry.

The WCI of 0.7% rise displayed an increase and decrease in the spot rates on all the major trades such as Shanghai to Rotterdam gained 10% to $1,874 per feu, whilst Shanghai to New York dropped 3% to $3,788 per feu. Few analysts say that Drewry is expecting a small week-on-week deduction in rates in the next few weeks. However, everyone is wondering how fast there will be a hike in spot rates as compared to contract rates, which are now on the much higher side.

Xeneta said that across all three major front haul trades, the rates have been switched between the contract rate and spot rate. By the end of 2021, long-term charges on these trades were at $4,300 per feu, lower than spot rates on average, to be $4,450 per feu more costly. At the end of 2022, the Far East to North Europe trade had a huge spread, $4,900 per feu, between spot and contract rates.”

Xenata said that compared to December 2021 only longer-term rates to North Europe dropped by 19%, while Asia to the US West Coast contract rates surged up 0.3% and Asia – US East Coast went up 8.1%, in part reflecting the contracting periods.