Drewry WCI drops for ninth consecutive week on soft demand

The unpredictability began after US tariffs were announced in April, which caused rates to surge from May through early June. Subsequently, the market saw a huge decline until mid-July, before the downward trend lost momentum and the rate of decrease slowed considerably.

Transpacific spot rates fell last week (ending August 14), as rates on Shanghai–Los Angeles fell 2 per cent ($2,494/FEU) and those on Shanghai–New York 5 per cent ($3,638/FEU). Since the big rush to ship cargo before the tariff increase is now over, Drewry expects spot rates to be less volatile in the coming week.

Freight rates for Shanghai–Rotterdam dropped 3 per cent to $3,176 per FEU, Rotterdam-Shanghai 3 per cent to $474, Shanghai-Geneo 4 per cent to $3,084, New York- Rotterdam down 1 per cent to $843 and Rotterdam-New York down 3 per cent to $1,945 per FEU during the week. But the rates for Los Angeles-Shanghai remained steady at $711 per FEU.

Drewry’s Container Forecaster expects the supply-demand balance to weaken again in second half of 2025, which will cause spot rates to contract. The volatility and timing of rate changes will depend on Trump’s future tariffs and on capacity changes related to the introduction of US penalties on Chinese ships, which are uncertain.

ALCHEMPro News Desk (KUL)