Drewry WCI falls 1.59% as tariffs weaken shipping demand
The Drewry World Container Index (WCI)—a composite measure of container freight rates—further eased by 1.59 per cent to $2,157 per 40-foot equivalent unit (FEU) on April 24, down from $2,192 per FEU the previous week. Uncertainty in global trade due to the ongoing tariff war has dented demand for freight shipping containers. Weaker demand may further dampen sentiment in the freight shipping market.
According to the weekly report, the index remains 79 per cent below the pandemic peak of $10,377 recorded in September 2021. However, it is still 52 per cent higher than the pre-pandemic average of $1,420 in 2019.
Drewry WCI dropped 1.59 per cent to $2,157 per FEU on April 24, reflecting reduced demand due to global tariff tensions. Despite being 79 per cent below its 2021 pandemic peak, it remains 52 per cent above 2019 levels. Major trade routes saw rate declines, while some remained stable. Drewry anticipates further rate drops amid continued trade uncertainty and reciprocal tariffs.
The year-to-date (YTD) average composite index stood at $2,854 per 40ft container, $38 higher than the 10-year average of $2,891 (which includes the exceptionally high rates during the 2020–2022 COVID period).
Freight rates from Shanghai to New York decreased by 3 per cent, or $95, to $3,611 per 40ft container. Rates from Shanghai to Los Angeles and Rotterdam to Shanghai fell by 2 per cent to $2,617 and $481 per 40ft container, respectively.
Similarly, rates from Shanghai to Rotterdam and Rotterdam to New York declined by 1 per cent to $2,312 and $2,109 per 40ft container, respectively, while rates from New York to Rotterdam increased by 1 per cent, or $8, to $825 per 40ft container. Meanwhile, rates from Shanghai to Genoa and Los Angeles to Shanghai remained stable.
Drewry expects rates to continue to decline in the coming week amid ongoing uncertainty stemming from reciprocal tariffs.
Fibre2Fashion News Desk (KUL)
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