Drewry WCI rises further; strike averted but Trump factor deepens

The Drewry World Container Index (WCI) composite index increased by 2.07 per cent to $3,986 per 40-foot equivalent unit (FEU) on January 9, 2025, up from $3,905 per FEU last week. The International Longshoremen’s Association (ILA) strike, due this month, was averted after an agreement between port managers and the workers. However, the northward movement in freight charges continued this week ahead of the incoming Trump Administration, under which tariff hikes are anticipated in the coming weeks.

The index was 62 per cent below the previous pandemic peak of $10,377 in September 2021, but 181 per cent higher than the average of $1,420 in 2019 (pre-pandemic).

The Drewry World Container Index rose by 2.07 per cent to $3,986 per FEU on January 9, 2025.
The ILA strike was averted after an agreement.
Freight rates from Shanghai to Los Angeles and New York increased, while rates to Rotterdam and Genoa decreased.
Drewry anticipates rate hikes in the coming week, driven by front-loading before tariff hikes under the incoming Trump Administration.

The average year-to-date composite index is $3,946 per 40-foot container, $1,079 higher than the 10-year average of $2,867 (inflated by the exceptional 2020-22 COVID period).

The freight rates from Shanghai to Los Angeles increased by 13 per cent, or $647, to $5,476 per 40-foot container, and those from Shanghai to New York rose by 10 per cent, or $640, to $7,085 per 40-foot container, while those from Rotterdam to Shanghai increased by 1 per cent, or $6, to $522 per 40-foot container.

Conversely, rates from Shanghai to Rotterdam decreased by 8 per cent, or $399, to $4,375 per 40-foot container, and those from Shanghai to Genoa fell by 4 per cent, or $210, to $5,210 per 40-foot container. Likewise, rates from Los Angeles to Shanghai, New York to Rotterdam, and Rotterdam to New York decreased by 1 per cent to $719, $828, and $2,698 per 40-foot container, respectively.

The ILA and USMX have reached a tentative agreement, averting a looming port strike in January. Nonetheless, Drewry expects rates on the Transpacific trade to rise in the coming week, driven by front-loading ahead of the anticipated tariff hikes under the incoming Trump Administration.

Fibre2Fashion News Desk (KUL)