USPTI and our clients continue to watch rates change rapidly. As previously note in our market updates; rates remain volatile. We anticipate rates to remain volatile thru mid-January and then begin to inch upward in anticipation of Chinese New Year. Supply and demand continue to be imbalanced and with trading condition not as robust as anticipated ocean carrier will continue to attempt to find a position where vessel utilization will be acceptable. The below article confirm that spot rate are and will continue to be unstable.
Drewry World Container Index – 30 Nov
The World Container Index assessed by Drewry, a composite of container freight rates on 8 major routes to/from the US, Europe and Asia, is down by 5% to $1147.47/40ft container [updated Thurs, 30 Nov 17].
Two-year spot freight rate trend for the World Container Index:
World Container Index: Drewry assessment on Thursday, 30 November 2017
The composite index is down by 5% this week and down by 19.27% from the same period of 2016.
The average composite index of the WCI, assessed by Drewry for year-to-date, is US $1,480/40ft container, which is $120 lower than the five-year average of $1,600/40ft container. It is also 19.27% lower than a year ago.
Spot rates remain weak on major East-West routes against the backdrop of slowing demand. The World Container Index (WCI), assessed by Drewry on the Shanghai-Rotterdam route, lost $10 from last week to reach $1,304 for a 40ft box. Rates are 21% weaker than in the same period in 2016. Similarly, rates on Shanghai-Los Angeles dwindled by $231 for a 40ft box, and rates on Shanghai-New York shed $23 to reach $1,820 per feu. Rates on Shanghai-Los Angeles are 27% and Shanghai-New York are 29% less than in the same period in 2016