For the first time in over a month, Drewry's WCI fell 7% this week, following six weeks of gains, mainly due to the low demand for US-bound cargo. It is a sign that the recent surge in imports to the US, which occurred after the temporary halt of higher US tariffs, will fail to have the lasting impact we had initially expected.
Freight rates from Shanghai to New York decreased 10% to $6,584 per 40ft container in the past week. However, spot rates are still up a significant 81% compared to six weeks ago (8 May), while those to Los Angeles dropped 20% this past week, but gained 73% over the last six weeks.
Freight rates increased from Shanghai to Rotterdam by 12% to $3,171 and from Shanghai to Genoa by 1% to $4,075 per 40ft container.
However, Drewry's Container Forecaster expects the supply-demand balance to weaken again in 2H25, which will cause spot rates to decline. The volatility and timing of rate changes will depend on the outcome of legal challenges to Trump's tariffs and on capacity changes related to the introduction of the US penalties on Chinese ships, which are uncertain.
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