Drewry WCI falls again but stabilise after tariff-driven volatility
The index eased further, though it appears to be stabilising after a volatile period. The unpredictability began following the announcement of US tariffs in April, which caused rates to surge from May through early June. Subsequently, the market experienced a steep decline until mid-July, after which the downward trend slowed considerably.
Drewry WCI dropped for the seventh straight week to $2,499/FEU, signalling stabilisation after recent volatility triggered by US tariffs. Transpacific spot rates dipped 2 per cent, while other major routes held steady. With the tariff pause on Chinese goods ending mid-August, rates may remain less volatile short-term, though Drewry warns of weakening demand later in 2025.
Transpacific spot rates fell this week, with Shanghai–Los Angeles rates down 2 per cent to $2,632 per FEU, and Shanghai–New York rates also slipping 2 per cent to $4,135 per FEU.
Rates remained almost steady on other routes: Shanghai to Rotterdam stood at $3,290 per 40-foot container, while Shanghai to Genoa was at $3,362. Rotterdam to Shanghai also held firm at $496, and New York to Rotterdam was stable at $876. However, rates from Rotterdam to New York declined by 1 per cent to $2,006 per 40-foot container.
With the temporary suspension of higher US tariffs on Chinese products set to end in mid-August, shipping lines are reducing services across the Pacific by cancelling more sailings. As the rush to ship cargo ahead of the tariff hike subsides, Drewry expects spot rates to remain less volatile in the coming week.
Drewry's Container Forecaster projects that the supply-demand balance will weaken again in the second half of 2025, leading to a further contraction in spot rates. The extent and timing of future rate fluctuations will depend on President Trump's forthcoming tariff decisions and on capacity adjustments tied to potential US penalties on Chinese vessels—both of which remain uncertain.
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