- Transpacific Spot Rates Fall as US Retailers Pull Back After Early Peak Season.
- Shanghai–Los Angeles and Shanghai–New York Rates Weaken Amid Tariff Pressures.
- Asia–Europe Spot Rates Slide as Vessel Surplus Offsets Demand and Port Delays.
Drewry’s World Container Index (WCI) has taken a hit for the 11th week in a row, and it looks like this downward trend will continue in the near future. The turbulence started back in April when the US announced tariffs, which initially caused rates to spike from May to early June. But then, starting mid-June, rates took a nosedive, continuing to drop through mid-July, and now they’re still on the decline this week, reports Drewry.
Transpacific Spot Rates Weaken
In the transpacific trade, spot rates have also taken a hit, with Shanghai–Los Angeles rates dropping by 3 per cent to $2,332 per feu, and Shanghai–New York rates falling 5 per cent to $3,291 per feu. The early peak season, which saw a surge in purchasing from US retailers, has come to an end. With the US economy slowing down and tariff costs on the rise, retailers are starting to pull back on their orders, albeit slowly. Drewry predicts that rates on this route will continue to decrease in the weeks ahead.
Asia–Europe Spot Rates Decline
Asia–Europe spot rates have also seen a decline this week, with Shanghai–Rotterdam rates slipping 10 per cent to $2,661 per feu and Shanghai–Genoa rates easing down 5 per cent to $2,842 per feu. Even though demand remains strong and there are port delays in Europe, an oversupply of vessel capacity is still dragging rates down. Drewry expects to see further drops on this trade lane in the near future.
Outlook for 2H25
Looking ahead, Drewry’s Container Forecaster suggests that the supply-demand balance is likely to weaken again in the second half of 2025, which will put more pressure on spot rates. How much and when these changes will happen will depend on future US tariff policies and any capacity adjustments related to penalties on Chinese vessels, both of which are still up in the air.
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Source: Drewry
