Drewry’s World Container Index (WCI) witnessed a notable decline of 7% this week, bringing the rate down to $3,279 per 40-foot container. This marked the first reduction in over a month, following six consecutive weeks of increases. The slump is primarily attributed to weakened demand for cargo destined for the U.S. This trend indicates that the recent spike in imports, which came in the wake of a temporary halt on higher U.S. tariffs, may not have the lasting influence that was initially anticipated.
Examining specific trade routes, freight rates from Shanghai to New York saw a significant drop of 10% this past week, settling at $6,584 per 40-foot container. Despite this decrease, spot rates on this route are still up by an impressive 81% compared to six weeks prior. Conversely, freight rates to Los Angeles dropped 20% this week while still exhibiting a 73% increase over the last six weeks. In other routes, rates increased as well; Shanghai to Rotterdam rates rose by 12% to $3,171, while rates from Shanghai to Genoa saw a slight 1% increase to $4,075 per 40-foot container.
However, Drewry’s Container Forecaster indicates potential challenges ahead, predicting that the supply-demand balance may weaken in the second half of 2025, which could lead to further declines in spot rates. The timing and extent of these rate changes will heavily depend on upcoming legal challenges concerning Trump’s tariffs and shifts in capacity related to U.S. penalties on Chinese vessels, which remain uncertain. As such, stakeholders should remain vigilant as the market conditions continue to evolve.