Tariffs pushing container rates up

Drewry’s World Container Index (WCI) went up three per cent to US$2,265 per 40-ft container for the week of April 7-11, the second straight week prices have increased.

The Drewry WCI composite index is now 78 per cent below the previous pandemic peak of US$10,377 in September 2021. However, the index is 59 per cent higher than the average US$1,420 in 2019.

The average year-to-date composite index closed at US$2,944 per 40-ft container, US$55 higher than the 10-year average of US$2,889, which was inflated by the COVID-19 period.

Freight rates from Shanghai to Rotterdam increased four per cent to US$2,392 per 40-ft container and those from Shanghai to Los Angeles rose three per cent to US$2,815. Rates from Rotterdam to Shanghai and Shanghai to New York went up two per cent to US$475 and US$3,976 per 40-ft container, respectively. Likewise, rates from Shanghai to Genoa and Rotterdam to New York increased one per cent to US$3,071 and US$2,153 respectively, whereas rates from New York to Rotterdam decreased one per cent to US$824 per 40-ft container.

Meanwhile, rates from Los Angeles to Shanghai remained stable.

In the coming weeks, Drewry expects rates to increase due to tariffs and reduced capacity.