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State of the Economy 31

Figure 2A: Purchasing Manager’s Sub-Index for Delivery Time Index

60
Eurozone US

50

40

30

20

10
Apr-10 Dec-11 Aug-13 Apr-15 Dec-16 Aug-18 Apr-20 Dec-21

Source: IHS Markit.
Note: Readings above 50 indicate faster delivery times, readings at 50 signal no change, and below
50 indicate slower.

Shipping Container Shortage and Rising Trade Costs
The stress in the container shortages can be captured in the Drewry’s Composite World
3
Container Index . The Index stands at US$ 9,698.33 per 40ft container as of 20 January
th
4
2022 (Figure 2B). This is US$ 6,656 higher than the five-year average and remains 82 per
cent higher than a year earlier. Such a significant rise in price for a prolonged period indicates
that the disruptions in the global container market are not yet over and will continue to
impact the global sea trade.

Figure 2B: World Container Index ( US$ per 40ft container)

$9,698
Freight rate (US $ 40 ft Containers) $666 $1,351 $1,270 $1,324 $1,525 $5,191
$10,310

01-Mar-16 01-Aug-16 01-Jan-17 01-Jun-17 01-Nov-17 01-Apr-18 01-Sep-18 01-Feb-19 01-Jul-19 01-Dec-19 01-May-20 01-Oct-20 01-Mar-21 01-Aug-21 01-Jan-22

Source: Drewry Supply Chain Advisors (2022)

3 Independent think tank on Maritime Transport
4 https://www.drewry.co.uk/supply-chain-advisors/supply-chain-expertise/world-container-index-assessed-
by-drewry