Transpacific container rates expected to rise ahead of proposed tariff hikes

Drewry’s World Container Index (WCI) went up two per cent to US$3,986 per 40-ft container for the week of Jan. 6-10, continuing an increase since Dec. 12. 

The WCI composite index is 62 per cent below the previous pandemic peak of US$10,377 in September 2021, but 181 per cent more than the average US$1,420 in 2019, pre-pandemic. 

The average year-to-date composite index is US$3,946 per 40-ft container, US$1,079 higher than the 10-year average of US$2,867, which was inflated by the COVID-19 period. 

Freight rates from Shanghai to Los Angeles jumped 13 per cent to US $5,476 per 40-ft container, while hose from Shanghai to New York rose 10 per cent to US$7,085 and Rotterdam to Shanghai increased one per cent to US$522. 

Rates from Shanghai to Rotterdam dropped eight per cent to US$4,375 per 40-ft container and those from Shanghai to Genoa fell by four per cent to $5,210. Likewise, rates from Los Angeles to Shanghai, New York to Rotterdam and Rotterdam to New York decreased one per cent to US$719, US$828 and US$2,698 per 40ft container, respectively. 

Despite a tentative agreement between the International Longshoremen’s Association and U.S. Maritime Association averting a looming port strike in January, Drewry expects rates on the Transpacific trade to rise in the coming week, driven by front-loading ahead of the anticipated tariff hikes under the incoming Trump Administration.