Container rates down for 10 straight weeks

Drewry’s World Container Index (WCI) fell four per cent to US$2,250 per 40-ft container for the week of Aug. 18-22, the tenth consecutive week of declines.

Following a volatile period  after U.S. tariffs were announced in April that caused rates to surge from May through early June, 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 to Los Angeles fell three per cent to US$2,412 per 40-ft container and those on Shanghai to New York reduced five per cent to US$3,463. The phase of accelerated purchasing by U.S. retailers, which induced an early peak season, has ended. In response to a decelerating U.S. economy and increased tariff costs, Drewry said they are now scaling back on procurement. Drewry expects spot rates to be less volatile in the coming weeks.

Asia to Europe spot rates declined this week, as rates on Shanghai to Rotterdam fell six per cent to US$2,973 per 40-ft container and those on Shanghai to Genoa also dropped three per cent  to US$2,978. Despite healthy demand and port delays in Europe, a growing surplus of vessel capacity has been pushing down spot rates on this trade lane, and Drewry expects spot rates to continue to decrease in the coming weeks.

Drewry’s container forecaster expects the supply-demand balance to weaken again in 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.