Drewry WCI slides 3% as pre-tariff rush fades

This ongoing downturn follows an earlier period of volatility triggered by higher US tariffs announced in April this year. The market’s reaction to the tariffs was delayed by about a month, with rates beginning to climb in May and surging through the first week of June. However, this trend has since reversed, with rates falling consistently since mid-June, indicating that the tariffs’ initial market impact was not sustained.

Transpacific spot rates declined this week, with Shanghai–Los Angeles rates down 5 per cent ($2,675/FEU) and Shanghai–New York down 7 per cent ($4,210/FEU). With the temporary suspension of higher US tariffs on Chinese products set to end in mid-August, shipping lines are cutting services across the Pacific by cancelling more sailings. As the rush to ship cargo before the tariff increase is now over, Drewry expects spot rates on this trade lane to continue falling next week.

Rates from Shanghai to Rotterdam dipped 1 per cent to $3,286 per 40-foot container, while Shanghai to Genoa fell 2 per cent to $3,376. Rotterdam to Shanghai remained steady at $495, and New York to Rotterdam was also stable at $875. However, rates from Rotterdam to New York increased by 2 per cent to $2,033 per 40-foot container.

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

ALCHEMPro News Desk (KUL)