- Container Rates Drop for Third Week as Imports Slow.
- Transpacific Freight Rates Decline Sharply, Says Drewry.
- Shanghai to US Spot Rates Fall Despite Recent Gains.
Drewry’s World Container Index (WCI) took a hit this week, dropping by 5.7% to settle at $2,812 for a 40ft container. This marks the third week in a row that we’ve seen a decline, mainly due to a dip in demand for cargo heading to the US. It seems that the recent uptick in US imports, following a brief pause in the higher tariffs, might not last as long or have the impact we thought it would, reports Drewry.
Major Rate Drops on Transpacific Routes
From Shanghai to Los Angeles, rates plummeted 15% week-on-week, now sitting at $3,180, although that’s still 17% higher than what we saw back on May 8. Meanwhile, the Shanghai to New York route saw an 11% decrease, bringing rates down to $5,070, but they’re still 39% above where they were eight weeks ago. Drewry anticipates that spot rates will keep falling next week, thanks to an oversupply of vessels and a drop in cargo demand.
Mixed Trends on Europe-Bound Routes
On the route from Shanghai to Genoa, freight rates fell by 9%, now at $3,751 for a 40ft container. In contrast, the Shanghai to Rotterdam route experienced an 8% increase, with rates rising to $3,468 per container, highlighting the varying demand across different regions in Europe.
Outlook for 2H25: Further Rate Pressure Expected
Drewry’s Container Forecaster is forecasting a tougher supply-demand balance in the latter half of 2025, which is likely to put some downward pressure on spot rates.
Two main factors could introduce more volatility and uncertainty into the market:
- Potential future tariff actions from former President Donald Trump, should they be reintroduced.
- US penalties on Chinese ships, which could impact capacity but remain uncertain in terms of their scope and timing.
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Source: Drewry
