Drewry WCI continues to see steep fall on surplus vessel capacity

The volatility began after US tariffs were announced in April, which pushed rates up from May through early June. However, they plunged thereafter until mid-July and have continued to decline into this week.

Transpacific spot rates weakened further, with Shanghai–Los Angeles falling 3 per cent to $2,332/FEU, while Shanghai–New York dropped 5.3 per cent to $3,291/FEU.

The early peak season, driven by accelerated purchasing from US retailers, has now ended. In response to a slowing US economy and higher tariff costs, retailers are scaling back procurement at a measured pace. Drewry expects rates on these trade lanes to continue declining in the coming weeks.

Asia–Europe spot rates also declined, with Shanghai–Rotterdam down 10 per cent to $2,661/FEU and Shanghai–Genoa sliding 5 per cent to $2,842/FEU. Backhaul rates eased as well: Rotterdam–Shanghai fell 2 per cent to $467/FEU, while Los Angeles–Shanghai held steady at $714/FEU, Rotterdam–New York was flat at $1,956/FEU, and New York–Rotterdam edged up 1 per cent to $845/FEU.

Despite healthy demand and port delays in Europe, surplus vessel capacity has been driving spot rates lower. Drewry forecasts further declines in the coming weeks.

Drewry’s Container Forecaster also predicts the supply-demand balance will weaken again in the second half of 2025, pushing spot rates down further. The volatility and pace of changes will depend on President Trump’s future tariff decisions and capacity adjustments related to US penalties on Chinese vessels, which remain uncertain.

ALCHEMPro News Desk (KUL)