- Transpacific Rates Drop to September Levels.
- Asia–Europe Rates Decline Amid Oversupply.
- Golden Week Blank Sailings Fail to Halt Slide.
The Drewry World Container Index (WCI) has taken a hit, dropping 6% to $1,913 for a 40ft container, marking the 14th consecutive week of decline. After a brief period of divergence, the major trade routes, Transpacific and Asia–Europe, are now both on a downward trend, albeit at different rates, reports Drewry.
Transpacific Spot Rates Take a Dip
Transpacific spot rates have resumed their downward slide, returning to levels we last saw at the beginning of September. Rates from Shanghai to Los Angeles have decreased by 4%, now sitting at $2,561 per 40ft container, while the route from Shanghai to New York has dropped 5% to $3,571. The temporary lift from General Rate Increases (GRIs) and blank sailings has worn off, leading to renewed pressure on rates.
Asia–Europe Rates Feeling the Strain
In the Asia–Europe trade lane, spot rates have taken a significant hit. The rate from Shanghai to Rotterdam has plummeted 11% to $1,910 per 40ft container, and the Shanghai to Genoa route has seen a 9% decrease, now at $2,131. This decline highlights the challenges carriers face in balancing the increasing capacity, thanks to new vessel deliveries, with a weakening demand.
Golden Week’s Influence and Future Outlook
As we approach China’s Golden Week holidays starting on October 1st, carriers are ramping up blank sailings. However, Drewry anticipates that rates will continue to decline. The Container Forecaster suggests that the supply-demand balance is likely to worsen again in the latter half of 2025, which could push spot rates even lower.
Tariffs and U.S. Policy Bring Uncertainty
The future of rate volatility is also tied to external factors. Potential new tariffs from the Trump administration and upcoming U.S. penalties on Chinese-built vessels could significantly impact the dynamics of the spot market.
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Source: Drewry
