Container rates drop amid tariff uncertainty

Drewry’s World Container Index (WCI) dropped three per cent to US$2,192 per 40-ft container for the week of April 14-18, ending two weeks of increases.

The Drewry WCI composite index is now 79 per cent below the previous pandemic peak of US$10,377 in September 2021. However, the index is 54 per cent higher than the average US$1,420 in 2019.

The average year-to-date composite index closed at US$2,897 per 40-ft container, US$7 higher than the 10-year average of US$2,890, which was inflated by the COVID-19 period.

Freight rates from Shanghai to New York decreased seven per cent to US$3,706 per 40-ft container and those from Shanghai to Los Angeles fell five per cent to US$2,683. Rates from Shanghai to Rotterdam and Shanghai to Genoa dropped two per cent to US$2,344 and US$3,018 per 40ft container, respectively. Also, rates from New York to Rotterdam and Rotterdam to New York shrank one per cent to US$817 and US$2,129 per 40-ft container, respectively.

Conversely, rates from Rotterdam to Shanghai increased four per cent to US$493 per 40-ft container, while rates from Los Angeles to Shanghai remained stable.

Drewry expects rates to continue to decline in the coming week due to reduced capacity and uncertainty stemming from tariffs.