In what was the worst ever month of June since 2015, the latest quotes also saw the level of US$1,500 breached for the first time since the second week of March 2020.
June has traditionally been a stronger month owing to the end of the peak season but the Drewry World Container Index (WCI) shed about US$191, over 13%, abating the relatively stronger quarterly performance for rates in over a year.
Europe – US rates took a 17% drubbing to end at US$2,670 and were the key contributor towards the composite index’s fall to US$1,494, as the price movements across other trade lanes remained subdued both for the headhaul and the backhaul with the Europe – Asia rated actually treading into the green territory.
What has been interesting is that Drewry has now flipped its commentary to “East-West spot rates to decline on most routes in the next few weeks.” After maintaining a mildly positive outlook prior to the week.
With the peak season impact non-existent and the GRIs unimpactful, this is likely. It must be remembered that the effect of the fall accelerated in the third quarter of 2022. However, the same effect is unlikely in 2023 owing to the low base effect.