Worst June in years for spot prices as WCI breaks $1,500

In the worst month of June since 2015, the USD 1,500 mark was broken through in the most recent listings for the first time since the second week of March 2020.

June has traditionally been a stronger month due to the end of the peak season, but the Drewry World Container Index (WCI) is down about $191, or over 13%, detracting from rates’ relatively stronger quarterly performance in over a year.

Interest rates between Europe and the US suffered a 17% drop to close at $2,670. They were a major contributor to the overall index’s decline to $1,494 as price action on other trade routes remained muted for both main and return transport between Europe and Asia, and rates are actually entering the green zone.

Interestingly, Drewry has now changed his comment to “East-West spot rates will fall on most routes over the next few weeks”. Having maintained a slightly positive outlook prior to the week.

Since the peak season impact is absent and the GRIs have no impact, this is likely. It should be noted that the effect of the decline intensified in the third quarter of 2022. However, due to the small base effect, the same effect is unlikely in 2023.

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