Container Shipping Rates Hit 20-Month Low as 16-Week Decline Continues

The Drewry World Container Index has fallen 5% to $1,669 per 40ft container, marking the 16th consecutive weekly decline and reaching its lowest level since January 2024.

Thursday’s detailed assessment from Drewry shows significant rate reductions across major trade lanes. Spot rates from Shanghai to Los Angeles decreased 5% to $2,196 per 40ft container, while Shanghai to New York rates fell 2% to $3,200.

The Asia-Europe corridor has been particularly affected, with rates declining for the 10th consecutive week. Shanghai-Rotterdam rates dropped 7% to $1,613 per 40ft container, and Shanghai-Genoa rates fell 9% to $1,804.

Carriers are responding to weakening market conditions by implementing blank sailings and reducing capacity ahead of China’s Golden Week holiday. With Chinese factories shutting down for eight days from October 1, East-West spot rates are expected to continue their downward trajectory in the coming weeks.

Industry analysts at Drewry’s Container Forecaster anticipate further pressure on rates, projecting “the supply-demand balance to weaken in the next few quarters, which will cause spot rates to contract.”

This sustained decline represents a significant shift from the elevated rates seen throughout much of 2023 and early 2024, suggesting the container shipping market is moving into a period of overcapacity relative to demand.

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