After month-long increases, container rates stabilize

Drewry’s World Container Index (WCI) remained stable at US$3,543 per 40-ft container for the week of June 9-13, a month of significant increases.

Drewry’s WCI surged 59 per cent in the last four weeks, as U.S. President Donald Trump’s pause on import tariffs led to the resumption of U.S.-bound traffic after the initial collapse of Transpacific volumes.

Freight rates from Shanghai to New York rose two per cent to US$7,285 per 40-ft container in the past week and 67 per cent since May 15, while spot rates to Los Angeles increased one per cent in the past week and 89 per cent in the past four weeks. Prices on the Transpacific eastbound route changed marginally amid the fresh injection of capacity.

Freight rates from Shanghai to Rotterdam and Genoa remained stable in the past week, at US$2,837 and US$4,054 per 40-ft container, respectively.

The latest sudden short-term strengthening in the supply-demand balance in global container shipping has reversed the trend of declining rates that started in January.

However, Drewry’s container forecaster expects the supply-demand balance to weaken again in the second half of the year, which will cause spot rates to decline. The volatility and timing of rate changes will depend on the outcome of legal challenges to Trump’s tariffs and on capacity changes related to the introduction of the U.S. penalties on Chinese ships, which are uncertain.