Drewry World Container Index drops 11%; Maersk to stay off Red Sea

The Drewry World Container Index (WCI) declined 11 percent to $3,445 per 40ft container for the week to January 23, 2025.

"The index was 67 percent below the previous pandemic peak of $10,377 in September 2021 but was 143 percent higher than the average $1,420 in 2019 (pre-pandemic)," says the latest update.

The average YTD composite index was $3,798 per 40ft container, $924 higher than the 10-year average of $2,874 (inflated by the exceptional 2020-22 Covid period), the update added.

"Freight rates from Shanghai to Rotterdam decreased 19 percent to $3,434 per 40ft container, while those from Shanghai to Genoa fell 10 percent to $4,562 per 40ft container. Rates from Shanghai to Los Angeles declined eight percent to $4,813 per 40ft container Rates from Rotterdam to Shanghai, Los Angeles to Shanghai, New York to Rotterdam and Rotterdam to New York also declined."

Drewry is expecting spot rates to decrease slightly in the coming week on the back of the Chinese Lunar New Year holidays.

Maersk to stay away from Red Sea
While there are discussions about which container line would start re-using the Red Sea, now that there is truce between Israel and Palestine and Houthis have promised not to attack ships, Maersk has issued an advisory saying it will "continue to sail around Africa via the Cape of Good Hope until safe passage through the area is ensured for the longer term.

"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. Furthermore, due to the continued tensions in the region, the security risk of commercial vessels transiting the Red Sea and Bab-el-Mandeb strait remains high.

"With this in mind – and the safety of our crew, vessels and cargo being our utmost priority – Maersk will continue to sail around Africa via the Cape of Good Hope until safe passage through the area is ensured for the longer term."

Returning to the area without fully ensuring safe passage could result in networks needing to be adjusted again, which would prove complicated both operationally and indeed for supply chain management, the advisory added.

The Gemini Cooperation, an alliance of Maersk and Hapag-Lloyd that goes operational on February 1, will be phasing in via the Cape of Good Hope, Maersk added in the advisory.