Drewry’s World Container Index (WCI) has reported its first weekly decline in over a month, dropping 7% this week. This downturn follows six consecutive weeks of gains and is primarily attributed to a significant decrease in demand for US-bound cargo. The dip suggests that the recent surge in US imports, which followed a temporary halt to higher US tariffs, may not have the sustained impact initially anticipated.
Key Highlights:
- Overall WCI Drop: Drewry’s WCI fell by 7% this week, breaking a six-week streak of increases.
- US-Bound Rates Decline: Freight rates from Shanghai to New York decreased by 10% to $6,584 per 40ft container in the past week. Similarly, rates from Shanghai to Los Angeles saw a 20% drop this past week.
- Despite Recent Drops, Significant Six-Week Gains Remain: While US-bound rates have fallen, spot rates from Shanghai to New York are still up a substantial 81% compared to six weeks ago (May 8th). Rates to Los Angeles have gained 73% over the same period.
- European Routes See Increases: In contrast to the US market, freight rates from Shanghai to Rotterdam increased by 12% to $3,171, and from Shanghai to Genoa by 1% to $4,075 per 40ft container.
Drewry’s analysis points to a softening in the supply-demand balance for the second half of 2025, which is expected to lead to a decline in spot rates. The precise timing and extent of these rate changes will largely depend on the outcomes of ongoing legal challenges to President Donald Trump’s tariffs and the impact of new US penalties on Chinese shipping. These factors introduce a degree of uncertainty into future market predictions.
This latest data suggests a potential shift in global shipping dynamics, with a notable cooling of the US import market. Industry stakeholders will be closely monitoring these developments as the year progresses.
