Container freight rates continue 13-week decline as supply-demand imbalance persists

The Drewry World Container Index (WCI) fell 3% to $2,044 per 40ft container this week, marking the 13th consecutive week of decline in global container shipping rates. 

This makes interesting reading for the U-Freight group with our strong presence in the global container shipping arena, as the latest assessment from Drewry reveals diverging trends across major trade lanes, with Transpacific rates rising while Asia-Europe rates continue to fall.

This extended decline comes amid mounting concerns about oversupply in the container shipping market and uncertain demand conditions. Industry analysts point to the growing imbalance between shipping capacity and cargo volumes as a key factor driving the sustained rate pressure.

On Transpacific routes, spot rates are experiencing modest gains following General Rate Increase (GRI) announcements by several carriers. Rates from Shanghai to Los Angeles increased 6% to $2,678 per 40-foot equivalent unit (FEU), while Shanghai to New York rates rose 2% to $3,743 per FEU. Despite these increases, Drewry analysts remain skeptical about the sustainability of these higher rates, noting: “Despite the upcoming Golden Week holidays in China, it is unlikely that these rates will be sustained without further cuts to shipping capacity.”

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