Container rates drop for first time since April

The Drewry World Container Index (WCI) fell two per cent to US$4,547 per 40-ft container for the week of July 13-17, marking the first decline since late April. The decrease indicates that the strong upwards momentum seen during the peak season is beginning to subside.

On the Transpacific trade route, rates from Shanghai to Los Angeles decreased three per cent to US$6,272 per 40-ft container, while those from Shanghai to New York remained stable at US$7,879. According to Drewry’s Container Capacity Insight, nine blank sailings are scheduled for the Transpacific route next week, signalling a reduction in overall capacity. With the rush for front-loading ahead of the U.S. tariff deadline easing, carriers’ proactive capacity management should prevent spot freight rates from falling significantly. As a result, Drewry projects that freight rates will hold steady through next week.

Carriers had announced higher freight-all-kinds (FAK) rates ranging from US$7,900 to US$8,500 per 40-ft container for July 15, but these increases failed to hold this week. On the Asia–Europe trade route, spot rates declined three per cent to US$6,300 per 40-ft container from Shanghai to Genoa, while those from Shanghai to Rotterdam dropped one per cent to US$4,873. Furthermore, congestion at European ports is easing, highlighted by a 33-hour WoW decrease in average vessel waiting times at Genoa port. Looking ahead, Drewry expects freight rates to remain stable next week.

U.S.–Iran tensions continued, with threats to shipping through the Bab el-Mandeb Strait and uncertainty around potential U.S. security charges for Strait of Hormuz transits adding to global shipping risks. U.S. tariffs are scheduled to expire July 24, while potential new tariffs are expected to be implemented in early August. Meanwhile, early peak season activity appears to be moderating, although capacity management and geopolitical disruptions continue to support freight rates.