Container freight rates weaken as WCI and FBX extend declines

Global container freight rates remained under pressure in the latest weekly assessments, with Drewry’s World Container Index (WCI) and the Freightos Baltic Index (FBX) recording further declines, while Chinese freight benchmarks and individual trade lanes showed contrasting movements.

Drewry’s WCI decreased 1% to US$4,389 per 40-foot container, while the FBX Global Container Freight Index fell 2% to US$3,452. Both benchmarks declined for a second consecutive week, following the increases recorded earlier in October.

Meanwhile, the China Containerized Freight Index (CCFI) rose 2.28%, contrasting with declines in the Shanghai Containerized Freight Index (SCFI) and Ningbo Containerized Freight Index (NCFI).

The NYSHEX Freight Index (NYFI) also presented a mixed picture, with Asia-US West Coast recording an increase while the other four monitored trade lanes declined.

Chinese freight indexes move in different directions

The SCFI declined 1.46% to 3,633.45 points on 6 November, compared with 3,687.35 in the previous assessment.

The CCFI moved in the opposite direction, increasing approximately 2.28% to 1,924.69 points from 1,881.82 a week earlier. The increase reversed the relatively modest movement recorded in the preceding assessment.

The NCFI declined approximately 1.93% to 2,443.24 points, compared with 2,491.26 previously, marking a second consecutive weekly decrease.

The divergence between the three Chinese benchmarks indicates that their latest assessments did not reflect a uniform market direction.

NYFI shows mixed Transpacific movements

The NYFI assessment published on 6 November recorded an increase on Asia-US West Coast, while Asia-US East Coast declined marginally.

Asia-US West Coast rose 1.29% to 7,823.86 from 7,724.52, extending the upward movement recorded in the previous assessment.

Asia-US East Coast decreased 0.23% to 10,101.42, compared with 10,125.18 a week earlier.

The contrasting movements suggest that the two major Transpacific routes continued to experience different short-term developments, although the East Coast decline remained relatively limited.

Asia-North Europe fell 1.04% to 3,170.40 from 3,203.78, reversing the 5.40% increase recorded in the preceding assessment.

The latest movement indicates renewed weakness on the route following its brief recovery.

Transatlantic rates decline in both directions

The Transatlantic market recorded decreases in both directions in the latest NYFI assessment.

Westbound rates declined 3.57% to 2,840.25 from 2,945.35, reversing the previous week’s 2.19% increase.

Eastbound rates fell more sharply, decreasing 5.86% to 1,058.39 from 1,124.31.

The Eastbound decline followed an 18.77% increase in the preceding assessment, illustrating the considerable week-to-week volatility affecting the route.

Both Transatlantic directions therefore returned to negative territory, contributing to the broader weakness observed across four of the five NYFI trade lanes.

Drewry WCI falls for a second consecutive week

Drewry’s WCI declined 1% to US$4,389 per 40-foot container in its assessment published on 5 November, compared with US$4,429 in the previous week.

On the Transpacific, Shanghai-Los Angeles remained broadly unchanged at US$7,539 per 40-foot container, while Shanghai-New York declined 3% to US$9,303.

On Asia-Europe, Shanghai-Rotterdam decreased 2% to US$3,615 per 40-foot container, while Shanghai-Genoa remained broadly stable at US$4,166.

The latest assessment followed a 3% decline in the WCI during the preceding week, when weaker Transpacific rates contributed to the overall decrease.

Drewry also highlighted capacity developments affecting the container shipping market, including the potential implications of more vessels returning to Suez Canal routes.

A wider return to shorter transit routes could affect effective vessel capacity and network deployment, although the scale and timing of any market impact will depend on carrier decisions and operating conditions.

These developments remain relevant to the freight rate outlook but should not be interpreted as the confirmed cause of the latest weekly movements.

FBX Global Index continues downward

The FBX Global Container Freight Index declined 2% to US$3,452, compared with US$3,513 in the preceding assessment.

The decrease followed a 1% decline a week earlier, extending the downward movement in the global benchmark.

The latest FBX reading therefore aligned with the negative direction of Drewry’s WCI, although the two indexes use different methodologies and underlying market data.

Their simultaneous declines suggest softer conditions across the global freight markets captured by these benchmarks, even as the CCFI recorded an increase.

Diverging benchmarks underline an uneven market

The latest assessments highlight substantial differences between global composite benchmarks and individual trade-lane developments.

Drewry’s WCI and the FBX declined for a second consecutive week, while the SCFI and NCFI also moved lower.

However, the CCFI increased 2.28%, demonstrating that weakness was not reflected across every Chinese benchmark.

On the Transpacific, NYFI Asia-US West Coast increased 1.29%, while Drewry’s Shanghai-Los Angeles assessment remained broadly unchanged.

For US East Coast routes, both indexes indicated softer conditions, with NYFI Asia-US East Coast declining 0.23% and Drewry Shanghai-New York falling 3%.

On Asia-Europe, the latest readings were more closely aligned. NYFI Asia-North Europe declined 1.04%, while Drewry Shanghai-Rotterdam decreased 2%.

Nevertheless, comparisons between the two indexes require caution because their methodologies, route definitions and reporting periods differ.

Market outlook

The latest figures indicate continued downward pressure on several major container freight benchmarks, although the direction and scale of movements remain uneven.

The second consecutive weekly declines in Drewry’s WCI and the FBX suggest that the recovery recorded earlier in October has lost momentum.

At the same time, the increase in the CCFI and continued gains on NYFI Asia-US West Coast demonstrate that the market is not experiencing a uniform decline.

Looking ahead, carrier capacity management, changes in available vessel space and developments affecting Suez Canal transits will remain important factors to monitor.

The next weekly assessments will help establish whether the recent weakness in global benchmarks continues or whether individual trade lanes begin to show more sustained improvement.

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