Container rates down for third straight week

Drewry’s World Container Index (WCI) dropped 5.7 per cent to US$2,812 per 40-ft container for the week of June 30-July 4.

Drewry’s WCI Index fell for the third consecutive week, a direct result of the low demand for U.S.-bound cargo and is a sign that the recent surge in U.S. imports, which occurred after the temporary halt of higher U.S. tariffs, will not have the lasting impact Drewry had initially expected.

Freight rates from Shanghai to Los Angeles decreased 15 per cent to US$3,180 per 40-ft container in the past week, but spot rates are still up a significant 17 per cent compared to eight weeks ago. Similarly, spot rates from Shanghai to New York dropped 11 per cent this past week to US$5,070 per 40-ft container, but gained 39 per cent since May 8. Drewry expects spot rates to continue to decline next week due to excess capacity and weak demand.

Freight rates from Shanghai to Genoa decreased nine per cent to US$3,751 per 40-ft container, while those from Shanghai to Rotterdam increased eight per cent to US$3,468.

Drewry’s container forecaster expects the supply-demand balance to weaken again in the second half of 2025, which will cause spot rates to decline. 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 the U.S. penalties on Chinese ships, which are uncertain.