For the second consecutive week, Drewry's World Container Index fell 9% this week, following five weeks of gains. This decline is a direct result of low demand for US-bound cargo and 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.
While freight rates from Shanghai to New York decreased 13% to $5,703 per 40ft container in the past week, spot rates are still up a significant 56% compared to seven weeks ago (8 May). Similarly, spot rates to Los Angeles dropped 20% this past week, but gained 38% over the last seven weeks.
Freight rates from Shanghai to Rotterdam and Shanghai to Genoa increased 1% to $3,204 and $4,100 per 40ft container, respectively.
However, in Drewry's Container Forecaster, we expect 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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