This week the Drewry World Container Index fell by 5% to $1,669 per 40ft container, sixteenth consecutive weekly decline and the lowest level since January 2024.

The detailed assessment from Drewry on October 2nd reported that rates on trade routes fell sharply. The spot rate from Shanghai to Los Angeles fell by 5% to $2,196 per 40ft container, while the rate from to New York fell by 2% to $3,200.

The Asia-Europe trade was particularly hard hit, with rates falling for the consecutive week. The rate from Shanghai to Rotterdam fell by 7% to $1,613 per 40ft container, and the rate from Shanghai tooa fell by 9% to $1,804.

In response to the soft market conditions, container lines are taking steps to implement cancellations and capacity ahead of China’s National Day Golden Week holiday. With most manufacturing factories in the holiday stopping work from October 1st for eight days, the spot rates on the east and westbound lanes are expected to continue to fall in the coming weeks.

Drewry’s Container Forecaster industry analysts anticipate further pressure on rates, forecastingweaker balance of supply and demand in the coming quarters, which would lead to a decline in spot rates”.

This extended decline in rates contrasts starkly with high rates experienced throughout 2023 and into the beginning of 2024, signalling that the container shipping market is entering a period of relative oversupply