Drewry’s WCI retraces 90% of pre-pandemic gains as China-Europe spot prices tumble
The Drewry’s World Container Index (WCI) saw yet another week of fall, by 7% to US$2,404, primarily on the back of tumbling rates in the China-Europe trade lanes.
The descent has been quicker than the rise, owing to an extremely weaker demand scenario, while the rise was primarily on supply chain disruptions and contingencies. As the world economies brace for some amount of recession, the rates are expected to slow down further until the Chinese New year (Feb-Mar 2023).
An interesting analysis of the WCI, which is now at a 26-month low, reveals that the index has slipped more in November, despite another week to go, than it did in October. However, September 2022 has been its worst ever, which was primarily triggered by falling China-US rates.
Author of the article: Gautham Krishnan is a logistics professional with Fluor Corporation, in the area of project logistics and analytics, and has worked in the areas of Project Management, Business Development and Government Consulting