Drewry's WCI Index fell for the third consecutive week, by 5.7% this week. This decline is a direct result of the low demand for US-bound cargo and is a sign that the recent surge in US imports, which occurred after the temporary halt of higher US tariffs, will not have the lasting impact we had initially expected.
Freight rates from Shanghai to Los Angeles decreased 15% to $3,180 per 40ft container in the past week, but spot rates are still up a significant 17% compared to eight weeks ago (8 May). Similarly, spot rates from Shanghai to New York dropped 11% this past week to $5,070 per 40ft container, but gained 39% over the last eight weeks. Drewry expects spot rates to continue to decline next week as well due to excess capacity and weak demand.
Freight rates from Shanghai to Genoa decreased 9% to $3,751 per 40ft container, while those from Shanghai to Rotterdam increased 8% to $3,468 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 Trump's future tariffs and on capacity changes related to the introduction of the US penalties on Chinese ships, which are uncertain.
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