Drewry WCI drops for second consecutive week amid weak US demand

The index declined for the second week in a row following five weeks of gains. This drop is a direct result of weak demand for US-bound cargo. A recent surge in US imports—triggered by the temporary suspension of higher US tariffs—was not sustained as initially expected.

Freight rates from Shanghai to New York decreased 13 per cent to $5,703 per 40-foot container in the past week; however, spot rates remain 56 per cent higher compared to seven weeks ago (May 8). Similarly, rates to Los Angeles dropped 20 per cent last week but are still up 38 per cent over the same seven-week period.

In contrast, freight rates from Shanghai to Rotterdam and Shanghai to Genoa rose by 1 per cent, reaching $3,204 and $4,100 per 40-foot container, respectively.

However, there are expectations that the supply-demand balance will weaken again in the second half of 2025, potentially driving down spot rates. The volatility and timing of these changes will depend on the outcome of legal challenges to Trump’s tariffs and on capacity adjustments linked to the US penalties on Chinese ships, both of which remain uncertain.

ALCHEMPro News Desk (KUL)