World Container Index drops further in last week

With U-Freight’s strong presence in the global container shipping arena, we note that Drewry’s World Container Index decreased 3% to USD2,517 per 40ft container in the week to Thursday, 24 July, marking its sixth consecutive weekly decline.

This ongoing downturn follows an earlier period of volatility triggered by higher US tariffs announced in April.

The market reaction to the tariffs was delayed by one month, with rates beginning to climb in May and surging through the first week of June.

However, this trend has since reversed, with rates falling consistently since mid-June, indicating that the tariff’s initial market impact was not sustained.

Transpacific spot rates were particularly affected. Rates on the Shanghai–Los Angeles route dropped by 5% to USD2,675 per feu (forty-foot equivalent unit), while Shanghai–New York rates declined 7% to USD4,210.

With the temporary suspension on higher US tariffs for Chinese goods expiring in mid-August, carriers have started cancelling more sailings in anticipation of reduced demand.

“Since the big rush to ship cargo before the tariff increase is now over, Drewry expects spot rates on this trade lane to continue declining next week.”

Looking ahead, Drewry’s Container Forecaster projects a weakening of the supply-demand balance in the second half of 2025, with further downward pressure on spot rates expected.

The pace and timing of these shifts remain uncertain, however, as they hinge on two key variables: Trump’s future tariffs and on capacity changes related to the introduction of US penalties on Chinese ships.

While the volatility appears to be subsiding, Drewry’s analysis suggests that ocean freight rates are unlikely to find support in the near term, particularly across major East-West trade lanes.

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