Container rates stabilizing after weeks of declines

After 11 weeks of decline, Drewry’s World Container Index (WCI) stabilized for the week of Sept. 1-5, dropping just one per cent to US$2,104 per 40-ft container.

This stability is the result of opposing trends in different trade lanes, Drewry said. While a significant increase in Transpacific rates pushed the index up, a major drop in Asia to Europe rates counterbalanced this surge, resulting in a steady index overall.

After 11 consecutive weeks of decline, transpacific spot rates are on the rise on the back of general rate increase announcements by several carriers. Spot rates from Shanghai to Los Angeles increased eight per cent to US$2,522 per feu, while those from Shanghai to New York jumped 12 per cent to US$3,677. Despite the upcoming Golden Week holiday in China, it is unlikely that these rates will be sustainable without further cuts to shipping capacity, resulting in Drewry expecting rates to remain stable in the upcoming weeks.

Asia to Europe spot rates fell this week, as rates on Shanghai to Rotterdam reduced 10 per cent to US$2,385 per 40-ft container and Shanghai to Genoa slid seven per cent to US$2,653. 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.