The Drewry World Container Index (WCI) has recorded its sixth consecutive weekly decline, falling by 3.3% this week. This sustained downturn follows a period of significant volatility earlier in the year, initially triggered by the announcement of higher US tariffs in April.
The market’s reaction to the new tariffs was observed with a one-month delay, as shipping rates began to climb in May and surged through the first week of June. However, this upward trend has since reversed, with rates consistently falling since mid-June, indicating that the initial market impact of the tariffs was not sustained over the longer term.
Transpacific spot rates experienced notable drops this week. Rates on the Shanghai–Los Angeles route decreased by 5% to $2,675 per 40ft equivalent unit (FEU), while rates on the Shanghai–New York route fell by 7% to $4,210 per FEU.
In anticipation of the temporary halt on higher US tariffs for Chinese products ending in mid-August, shipping lines are proactively reducing services across the Pacific by cancelling more sailings. With the pre-tariff increase cargo rush now concluded, Drewry anticipates that spot rates on this crucial trade lane will continue their decline next week.
Drewry’s Container Forecaster projects a weakening of the supply-demand balance in the second half of 2025, which is expected to further depress spot rates. The precise timing and extent of future rate volatility will largely depend on upcoming tariff decisions by the Trump administration and potential capacity adjustments stemming from the introduction of US penalties on Chinese ships, both of which remain uncertain.
Drewry is a leading international provider of research and consulting services to the maritime and shipping industry. With a focus on market intelligence, strategic advice, and operational insights, Drewry helps clients navigate the complexities of global trade and logistics.
