Container rates down for second straight week

The Drewry World Container Index (WCI) dropped another four per cent to US$4,374 per 40-ft container for the week of July 20-24 due to a decline in rates on Asia–Europe and Transpacific trade routes.

On the Transpacific trade route, spot rates from Shanghai to Los Angeles decreased six per cent to US$5,878 per 40-ft container, while those from Shanghai to New York fell four per cent to US$7,598 due to increased capacity and easing demand. According to Drewry’s Container Capacity Insight, six blank sailings are scheduled on the Transpacific trade route next week, compared with nine scheduled this week, indicating higher capacity deployment by carriers and a widening supply–demand gap. Drewry expects rates to remain stable next week.

Additionally, the current 10 per cent global U.S. import tariffs are set to expire July 24, while new tariffs are expected to take effect in early August, creating uncertainty for shippers.

Spot rates declined five per cent to US$5,988 per 40-ft container from Shanghai to Genoa, while rates from Shanghai to Rotterdam fell one per cent to US$4,824. According to Drewry’s Container Capacity Insight, four blank sailings are scheduled on the Asia–Europe trade route next week, two more than last week, reflecting an increase in capacity available in the market. With easing demand and increased capacity, Drewry expects rates to decrease slightly next week.

Geopolitical tensions between the U.S. and Iran continued and, with ongoing concerns over the Strait of Hormuz, several carriers have announced emergency fuel surcharges (EFS) to take effect in August.

Freight rates on the major east-west trade lanes declined for a second consecutive week, as increased capacity in the market coincided with easing demand. Drewry indicated that ongoing geopolitical developments and uncertainty surrounding U.S. tariff policies could continue to influence market conditions and freight rate trends in the coming weeks.