Drewry WCI down as demand drops & US tariff worries weigh on trade

This decline is directly attributed to low demand for US-bound cargo and indicates that the recent surge in US imports—following the temporary halt on higher US tariffs—may not have the lasting impact initially anticipated.

Freight rates from Shanghai to Los Angeles dropped 8 per cent to $2,931 per 40ft container over the past week, though spot rates remain 8 per cent higher than they were nine weeks ago (May 8). Similarly, spot rates from Shanghai to New York fell 5 per cent this past week to $4,839 per 40ft container but are still up 33 per cent over the same nine-week period. Drewry expects spot rates to continue declining next week due to excess capacity and weak demand.

Rates from Shanghai to Genoa declined 7 per cent to $3,491 per 40ft container, while those from Shanghai to Rotterdam fell 2 per cent to $3,384 per 40ft container.

However, Drewry’s Container Forecaster predicts that the supply-demand balance will weaken again in the second half of 2025, leading to further declines in spot rates. The timing and extent of rate changes will depend on President Trump’s future tariff actions and capacity adjustments related to the US penalties on Chinese vessels, which remain uncertain.

ALCHEMPro News Desk (KUL)