The World Container Index (WCI) assessed by Drewry for Shanghai to Northern Europe routes has reached a record low of $10,000 per a 40ft container at the 18th calendar week, and it continues to fall. Since the last week of February this route has suffered its biggest decline of 28%. Shanghai to Los-Angeles container spot rate has decreased by 21%, which is the second huge drop. The composite index of the WCI has decreased by 20% during that period.
To keep the rates up, carriers cancel sailings. According to The Loadstar, forward export bookings from Shanghai are down by 40% or more, prompting carriers to consolidate loads and blank sailings. According to Freightos platform, three liner shipping alliances have announced cancellations of more than a third of the scheduled sailings out of Asia for the upcoming month. THE Alliance will blank 33% of its scheduled sailings from Asia, the Ocean Alliance will void 37%, while the 2M Alliance comprising of MSC and Maersk acts more decisively having cancelled 39% of sailings from Asia.