Container rates down for fifth straight week

Drewry’s World Container Index (WCI) fell 2.6% to US$2,602 per 40-ft container for the week of July 14-18 marking its fifth consecutive weekly decline.

Drewry said this ongoing downturn follows an earlier period of volatility triggered by higher U.S. tariffs announced in April. The market reaction to the tariffs lagged by one month, with rates beginning to climb in May and surging through the first week of June. However, this trend has since reversed, with rates falling consistently since mid-June, indicating that the tariff’s initial market impact was not sustained.

Transpacific spot rates fell this week, with those on Shanghai–Los Angeles down four per cent to US $2,817 per feu and those on Shanghai–New York down six per cent to US $4,539. However, both lanes remain above their levels from 10 weeks ago when tariff concerns began driving up rates.

Spot rates from Shanghai to Los Angeles are still four per cent higher, while rates to New York are 24 per cent higher than on May 8.

Drewry expects spot rates on this trade lane to continue to decline due to weak demand.

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 U.S. President Donald Trump’s future tariffs and on capacity changes related to the introduction of U.S. penalties on Chinese ships, which are uncertain.