Drewry WCI rises 2.6% on tariff issues, lower shipping capacity

Shipping demand increased from Asia to the United States as exporters sought to meet the deadline for higher tariffs at US ports. However, freight rates from the United States to Asia either declined or remained stable.

According to the weekly report, the index remains 78 per cent below its pandemic peak of $10,377 recorded in September 2021. Nevertheless, it is 59 per cent higher than the pre-pandemic average of $1,420 in 2019.

The average year-to-date (YTD) composite index stood at $2,944 per 40-foot container, which is $55 higher than the 10-year average of $2,889 (inflated by the exceptional 2020-22 COVID period).

Freight rates from Shanghai to Rotterdam increased by 4 per cent, or $88, to $2,392 per 40-foot container, while those from Shanghai to Los Angeles rose by 3 per cent, or $89, to $2,815 per 40-foot container. Similarly, rates from Rotterdam to Shanghai and Shanghai to New York climbed 2 per cent to $475 and $3,976 per 40-foot container, respectively.

Likewise, rates from Shanghai to Genoa and Rotterdam to New York increased by 1 per cent to $3,071 and $2,153 per 40-foot container, respectively, whereas rates from New York to Rotterdam fell by 1 per cent, or $7, to $824 per 40-foot container.

Meanwhile, rates from Los Angeles to Shanghai remained unchanged. In the coming weeks, Drewry expects rates to rise further due to tariffs and reduced capacity.

ALCHEMPro News Desk (KUL)