Container rates continue to decline

Drewry’s World Container Index (WCI) declined for the 11th consecutive week, dropping six per cent to US$2,119 per 40-ft container for the week of Aug. 25-29.

Drewry expects container prices to continue falling in the coming weeks, following unpredictable rates after U.S. tariffs were announced in April, causing rates to surge from May through early June, then plunge until mid-July and continue since.

Transpacific spot rates fell this week, as rates on Shanghai to Los Angeles fell three per cent to US$2,332 per 40-ft container and those on Shanghai to New York reduced five per cent to US$3,291. The phase of accelerated purchasing by U.S. retailers, which induced an early peak season, has ended, according to Drewry. In response to a decelerating U.S. economy and increased tariff costs, they are now scaling back on procurement but at a measured pace. Because of this, Drewry expects rates on this trade lane to continue declining in the coming weeks.

Asia to Europe spot rates fell this week, as rates from Shanghai to Rotterdam dropped 10 per cent to US$2,661 per 40-ft container and Shanghai to Genoa slid five per cent to US$2,842. Despite healthy demand and port delays in Europe, a growing surplus of vessel capacity has been pushing down spot rates on this trade lane. Therefore, Drewry predicts a further decline in spot rates in the coming weeks.

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 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.