- Global Container Market Volatile as US Imports Slow.
- Transpacific Demand Weakens, Freight Rates Fall 5%.
- Drewry Index Slides 3% Amid Persistent Overcapacity.
The global container shipping market is still being influenced by changing tariffs, shifting sourcing patterns, and persistent capacity challenges. While there are some signs of improvement, the overall situation remains quite unpredictable, reports Drewry.
Decline in Blank Sailings on Major Routes
We’ve seen a significant drop in blank sailings on major East–West routes, with a 56% decrease month-over-month in July and an 8% dip in August. Out of 716 scheduled sailings across the Transpacific, Transatlantic, and Asia–North Europe & Mediterranean routes, only 29 sailings are expected to be cancelled between Week 30 (July 21–27) and Week 34 (August 18–24), resulting in a relatively low cancellation rate of just 4%.
Transpacific Route Sees Most Cancellations
When it comes to the cancelled sailings, the Transpacific eastbound route takes the lead, accounting for 66% of the cancellations, followed by Asia–North Europe & Mediterranean at 21%, and Transatlantic westbound at 13%. During these five weeks, a solid 96% of weekly departures are expected to go ahead as planned.
Import Momentum into the US Slows
The momentum for US imports has slowed down, as many shippers placed their orders earlier this year to dodge potential tariffs. This early frontloading has led to a softening in Transpacific demand, which in turn has caused freight rates to drop amid ongoing overcapacity.
Freight Rates Decline Across Key Routes
On July 17, Drewry’s World Container Index saw a 3% week-over-week decline, landing at $2,602, with Transpacific rates dropping by 5%. Meanwhile, the Asia–Europe and Mediterranean trades are showing more stability, with rates only decreasing by 1%, although port congestion in Northern Europe continues to be a concern.
Transatlantic Trade Faces Uncertainty
The Transatlantic trade is holding relatively steady, but the market is keeping a close eye on developments as the US considers a 30% tariff on EU goods starting August 1, which could have a significant impact on future trade volumes.
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Source: Drewry
