Drewry World Container Index falls, Maersk maintains Red Sea stance
UAE – The Drewry World Container Index (WCI) recorded an 11% drop, settling at USD 3,445 per 40ft container for the week ending January 23, 2025.
This marks a significant decrease from the pandemic peak of USD 10,377 in September 2021. However, the index remains 143% higher than the pre-pandemic average of USD 1,420 recorded in 2019.
“The index was 67 percent below the previous pandemic peak of USD 10,377 in September 2021 but was 143 percent higher than the average USD 1,420 in 2019 (pre-pandemic),” the Drewry report stated.
The year-to-date (YTD) composite index stands at USD 3,798 per 40ft container, USD 924 above the 10-year average of USD 2,874, which was influenced by the high freight rates during the pandemic years of 2020-2022.
Freight rates on various major routes also saw declines. The Shanghai to Rotterdam route experienced a 19% drop, reaching USD 3,434 per 40ft container, while rates from Shanghai to Genoa fell by 10% to USD 4,562.
Other routes, including Shanghai to Los Angeles and Rotterdam to New York, recorded reductions between 8% and 10%.
Drewry anticipates a slight decline in spot rates in the coming weeks due to reduced activity during the Chinese Lunar New Year.
Maersk’s approach to Red Sea passage
Maersk has announced it will continue rerouting its vessels around the Cape of Good Hope instead of using the Red Sea, citing safety concerns.
While a truce between Israel and Hamas and assurances from the Houthi organization to halt attacks on ships have brought optimism, Maersk remains cautious about resuming operations in the area.
“The process to bring the current conflict between Israel and Hamas to an end is dependent on a multi-phased roadmap continuing to be met, and as such the predictability of the situation remains a complex challenge,” Maersk stated in its advisory.
The company emphasized that ensuring the safety of its crew, vessels, and cargo remains its top priority.
It warned that an early return to the Red Sea could lead to operational disruptions and adjustments to supply chains if the situation deteriorates again.
Maersk’s decision aligns with its upcoming collaboration with Hapag-Lloyd under the Gemini Cooperation, which is set to commence on February 1. The partnership will initially operate routes via the Cape of Good Hope.
The recent developments in the Red Sea region follow a ceasefire agreement between Israel and Hamas and ongoing peace talks involving the Houthis.
These steps have brought hope for stability in the region. However, shipping companies are taking a cautious approach as tensions remain high.
Maersk noted, “When it is deemed safe to return to the Red Sea, we will strive to provide sufficient notice of network alterations so you can plan your operations accordingly.”
For now, the company advises its customers to plan their logistics around the adjusted routes and assures them of continued updates on any changes.
Drewry World Container Index falls, Maersk maintains Red Sea stance
UAE – The Drewry World Container Index (WCI) recorded an 11% drop, settling at USD 3,445 per 40ft container for the week ending January 23, 2025.
This marks a significant decrease from the pandemic peak of USD 10,377 in September 2021. However, the index remains 143% higher than the pre-pandemic average of USD 1,420 recorded in 2019.
“The index was 67 percent below the previous pandemic peak of USD 10,377 in September 2021 but was 143 percent higher than the average USD 1,420 in 2019 (pre-pandemic),” the Drewry report stated.
The year-to-date (YTD) composite index stands at USD 3,798 per 40ft container, USD 924 above the 10-year average of USD 2,874, which was influenced by the high freight rates during the pandemic years of 2020-2022.
Freight rates on various major routes also saw declines. The Shanghai to Rotterdam route experienced a 19% drop, reaching USD 3,434 per 40ft container, while rates from Shanghai to Genoa fell by 10% to USD 4,562.
Other routes, including Shanghai to Los Angeles and Rotterdam to New York, recorded reductions between 8% and 10%.
Drewry anticipates a slight decline in spot rates in the coming weeks due to reduced activity during the Chinese Lunar New Year.
Maersk’s approach to Red Sea passage
Maersk has announced it will continue rerouting its vessels around the Cape of Good Hope instead of using the Red Sea, citing safety concerns.
While a truce between Israel and Hamas and assurances from the Houthi organization to halt attacks on ships have brought optimism, Maersk remains cautious about resuming operations in the area.
“The process to bring the current conflict between Israel and Hamas to an end is dependent on a multi-phased roadmap continuing to be met, and as such the predictability of the situation remains a complex challenge,” Maersk stated in its advisory.
The company emphasized that ensuring the safety of its crew, vessels, and cargo remains its top priority.
It warned that an early return to the Red Sea could lead to operational disruptions and adjustments to supply chains if the situation deteriorates again.
Maersk’s decision aligns with its upcoming collaboration with Hapag-Lloyd under the Gemini Cooperation, which is set to commence on February 1. The partnership will initially operate routes via the Cape of Good Hope.
The recent developments in the Red Sea region follow a ceasefire agreement between Israel and Hamas and ongoing peace talks involving the Houthis.
These steps have brought hope for stability in the region. However, shipping companies are taking a cautious approach as tensions remain high.
Maersk noted, “When it is deemed safe to return to the Red Sea, we will strive to provide sufficient notice of network alterations so you can plan your operations accordingly.”
For now, the company advises its customers to plan their logistics around the adjusted routes and assures them of continued updates on any changes.