Container rates stabilizing; down one per cent

Drewry’s World Container Index (WCI) fell another one per cent to US$2,499 per 40-ft container for the week of July 28 to Aug. 1, continuing to stabilize after a volatile period as a result of the announcement of U.S. tariffs in April.

Subsequently, the market saw a heavy decline until mid-July, after which the downward trend lost momentum and the rate of decrease slowed considerably.

Transpacific spot rates fell this week, as rates on Shanghai–Los Angeles were down two per cent to US$2,632 per 40-ft container and those from Shanghai–New York also slid two per cent to US$4,135.

With a temporary halt on higher U.S. tariffs for Chinese products ending in mid-August, shipping lines are cutting back on services across the Pacific by canceling more sailings. Since the big rush to ship cargo before the tariff increase is now over, Drewry expects spot rates to remain less volatile in the coming week.

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