Container rates continue to decline

Drewry’s World Container Index (WCI) dropped by nine per cent to US$2,983 per 40-ft container for the week of June 23-27.

For the second consecutive week, Drewry’s WCI fell following five weeks of gains. Drewry said this decline is a direct result of low demand for U.S.-bound cargo and is a sign that the recent surge in imports to the U.S., which occurred after the temporary halt of higher U.S. tariffs, will fail to have the lasting impact they had initially expected.

While freight rates from Shanghai to New York decreased 13 per cent to US$5,703 per 40-ft container in the past week, spot rates are still up a significant 56 per cent compared to rates on May 8. Similarly, spot rates to Los Angeles dropped 20 per cent this past week, but gained 38 per cent over the last seven weeks.

Freight rates from Shanghai to Rotterdam and Shanghai to Genoa increased one per cent to US$3,204 and US$4,100 per 40-ft container respectively.

However, Drewry’s container forecaster expects the supply-demand balance to weaken again in the second half of 2025, which will cause spot rates to decline. The volatility and timing of rate changes will depend on the outcome of legal challenges to U.S. President Donald Trump’s tariffs and on capacity changes related to the introduction of the U.S. penalties on Chinese ships, which are uncertain.