The Drewry World Container Index (WCI) fell 1% to $1,933 per forty-foot container (FEU), the fifth consecutive weekly decline, as rates continue to weaken on benchmark trade routes from Asia to the United States and Europe. The London-based analyst said spot rates from Shanghai to major U.S. ports declined 1% from the previous week due to lower cargo volume, to $2,214 per FEU to Los Angeles and $2,800 to New York. To balance capacity amid weak demand ahead of factory closures for China’s Lunar New Year, Drewry said carriers announced 57 blank sailings over the next two weeks on the trans-Pacific trade lane to the U.S. East and West Coasts – “much higher than in previous years. Hence, we expect spot rates on this trade to decline slightly in the coming weeks.” Blankings are scheduled sailings that are postponed or cancelled, and can play havoc with carefully-planned shipping logistics that depend on coordinated connections across the supply chain. window.googletag = window.googletag || {cmd: []}; googletag.cmd.push(function() { googletag.defineSlot(‘/21776187881/FW-Responsive-Main_Content-Slot1’, [[300, 100], [320, 50], [728, 90], [468, 60]], ‘div-gpt-ad-1709668545404-0’).defineSizeMapping(gptSizeMaps.banner1).addService(googletag.pubads()); googletag.pubads().enableSingleRequest(); googletag.pubads().collapseEmptyDivs(); googletag.enableServices(); }); googletag.cmd.push(function() { googletag.display(‘div-gpt-ad-1709668545404-0’); }); Sharply weaker rates cut against expectations of rising demand and increasing spot rates ahead of Lunar New Year. But demand peaked earlier than usual as shippers manage an unsettled global trade outlook and widespread economic uncertainty. Normal seasonal patterns could further depress rates, Drewry said. Spot rates usually apply to on-demand freight as shippers seek transport at the last-minute or to accommodate changes to scheduled services,…
