Drewry WCI slides 3% as pre-tariff rush fades
This ongoing downturn follows an earlier period of volatility triggered by higher US tariffs announced in April this year. The market's reaction to the tariffs was delayed by about a 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 tariffs' initial market impact was not sustained.
Drewry World Container Index fell 3.22 per cent to $2,517/FEU on July 24, marking its sixth straight weekly decline. Transpacific rates dropped sharply, with Shanghaiâ€'New York down 7 per cent. As pre-tariff shipping demand fades, rates are expected to continue falling. Drewry warns of further weakness in H2 2025, amid uncertainty over President Trump's tariffs and potential US penalties on Chinese vessels.
Transpacific spot rates declined this week, with Shanghai–Los Angeles rates down 5 per cent ($2,675/FEU) and Shanghai–New York down 7 per cent ($4,210/FEU). With the temporary suspension of higher US tariffs on Chinese products set to end in mid-August, shipping lines are cutting services across the Pacific by cancelling more sailings. As the rush to ship cargo before the tariff increase is now over, Drewry expects spot rates on this trade lane to continue falling next week.
Rates from Shanghai to Rotterdam dipped 1 per cent to $3,286 per 40-foot container, while Shanghai to Genoa fell 2 per cent to $3,376. Rotterdam to Shanghai remained steady at $495, and New York to Rotterdam was also stable at $875. However, rates from Rotterdam to New York increased by 2 per cent to $2,033 per 40-foot container.
Drewry's Container Forecaster expects the supply-demand balance to weaken again in the second half of 2025, which will cause spot rates to decline. The volatility and timing of these rate changes will depend on President Trump's future tariff decisions and capacity shifts related to the possible introduction of US penalties on Chinese ships, which remain uncertain.
Fibre2Fashion News Desk (KUL)
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
&w=3840&q=100)
Business Standard
25 minutes ago
- Business Standard
China rolls out $500 child subsidies to boost birth rate: But is it enough
China has announced a nationwide annual childcare subsidy of 3,600 yuan (approximately ₹43,000 or $500) per child under the age of three, Chinese state-media Xinhua reported on Monday. This is a significant step towards the country's efforts in reversing the plunging birth rate and ageing population crisis. The initiative, retroactive from January 1, 2025, marks Beijing's most comprehensive pro-birth move yet — but will this amount, though welcome, be sufficient to reverse deep-rooted demographic trends? What's happening with China's population? China recorded its lowest-ever birth rate in 2023, with just 6.39 births per 1,000 people. Although 2024 saw a modest rebound of 520,000 additional births, analysts widely attribute this to a temporary post-Covid-19 recovery. Moreover, 2024 was the year of the Dragon according to Chinese zodiac signs. Children born during this year are believed to possess unique personality traits and are associated with good fortune, which could explain the rare uptick in birth rates. However, the overall population still shrank by two million, its steepest decline since 1961, officially ceding the title of most populous country to India. This is no small concern. By 2035, China is projected to have 400 million citizens over the age of 60—nearly one-third of its total population—raising red flags over future labour shortages, pension sustainability, and economic stagnation. China's one-child policy China's one-child policy, in place from 1980 to 2015, has also left a cultural imprint that will be difficult to erase. The country has been actively reversing the policy, allowing two children from 2016 and three from 2021. While these efforts are slowly being realised, they are not keeping up with the population decline. New subsidy to aid 20 million The new subsidy, which will not be taxed or counted against other welfare benefits, is expected to benefit over 20 million families annually, Xinhua reported. It follows years of local pilot schemes offering more generous incentives, such as Hohhot's 10,000-yuan annual grants per child and Shenyang's monthly payments of 500 yuan for third children. While these schemes have shown some encouraging signs— Tianmen city, for instance, recorded a 17 per cent spike in newborns in 2024 —experts warn against overstating the impact of cash handouts alone. Professor Mao Zhuoyan of Capital University of Economics and Business told Xinhua that while subsidies are helpful in easing day-to-day expenses like formula or diapers, they are not a 'cure-all' to the full cost of raising a child in China. Cost of parenthood in China According to a 2024 report by the YuWa Population Research Institute, the average cost of raising a child from birth to college graduation in China now stands at 680,000 yuan (about ₹82 lakh or $94,557). Even raising a child to the age of 17 costs over 538,000 yuan, placing China among the most expensive countries in the world to have children. Compare this with average annual urban salaries of 125,100 yuan in affluent provinces like Jiangsu and just 58,100 yuan in hospitality sectors—according to Statista, based on annual salaries drawn in 2023—and it becomes evident why many young Chinese are reluctant to start families. Parenthood crisis: What's really deterring China's youth? Beyond finances, broader cultural and societal shifts are at play. Many young people, especially women, cite career pressures, lack of childcare support, and unaffordable housing as key deterrents to parenthood, a report by Think Global Health showed. Delayed marriages, rising infertility, and a longstanding preference for smaller families have further complicated matters. How is the Chinese govt responding to population crisis? In response, Beijing has been introducing a plethora of reforms. Some of these are: Promoting flexible work hours and work-from-home options for parents Offering preferential housing for families with multiple children Expanding childcare and preschool infrastructure Providing IVF and fertility treatments under public health insurance Mandating epidural access in large hospitals by 2027 Is the subsidy too little, too late? While the subsidy signals serious intent, experts argue it's far from a silver bullet. Yang Yiyong from the Academy of Macroeconomic Research told Xinhua that China needs affordable education, accessible child and maternity care, workplace protections for mothers, and social support structures. And time is running out. Projections of the United Nations estimate China's population could shrink to 1.3 billion by 2050, and further to 633 million by 2100, losing over 750 million people this century. Are there lessons for India here? As India assumes the role of the world's most populous nation, Beijing's policy evolution holds crucial lessons. India, too, is seeing a fertility slowdown, and the economic and social costs of parenthood are rising rapidly in urban areas. Last month, a LinkedIn post by Bengaluru-based startup founder Meenal Goel went viral, where Goel estimated the cost of raising a child in India to be between ₹38-45 lakh. Other media reports suggest these costs can even go above ₹1 crore, depending on school fees, tuition, college, lifestyle, etc. China's experiment is a sign that reversing a demographic slide is complex and expensive. Moreover, while subsidies may be helpful, a much wider structural transformation is still needed. The bottom line China's 3,600-yuan subsidy is a notable step, but unless backed by deeper social reforms, it may not be enough to convince families that parenthood is affordable or desirable in the modern Chinese economy.
The Wire
25 minutes ago
- The Wire
Shanghai Cooperation Organization Media and Think Tank Summit Guests' Mianchi Tour: Experiencing the Charm of Yangshao Culture
SANMENXIA, China, July 29, 2025 /Xinhua-AsiaNet/-- From July 23 to July 27, the Shanghai Cooperation Organization Media and Think Tank Summit is being held in Zhengzhou City, Henan Province. On July 23, 19 guests from SCO member states traveled to Mianchi County, Sanmenxia City, where they visited distinctive sites such as Henan Xianmen Mountain Scenic Area, Yangshao Culture Museum, Henan Yangshao Liquor Co., Ltd., and Yangshao Ecological Winemaking Park. Through this immersive experience, they gained insight into the time-honored legacy and modern innovations of Yangshao culture. Henan Yangshao Liquor Co., Ltd. is a benchmark enterprise for baijiu in Henan Province and a leading player in China's baijiu industry. To better preserve and promote Yangshao Culture and Chinese drinking culture, the company has developed "Yangshao Winery: One Winery with Five Gardens". Yangshao Caitaofang is a flagship product of the company. The bottle design takes inspiration from national treasures such as the "small-mouthed pointed-bottomed bottle" and "fish-patterned gourd bottle". It represents the 13th distinct aroma category in Chinese baijiu. Moreover, Yangshao Caitaofang has been exported to 17 countries, including the UK, the Philippines, Laos, Kenya, and Indonesia. It serves as a messenger, spreading Yangshao Culture overseas and sharing the unique flavors of China. Source: Henan Yangshao Liquor Co., Ltd. (Disclaimer: The above press release comes to you under an arrangement with Asianet and PTI takes no editorial responsibility for the same.). PTI PWR
Fibre2Fashion
26 minutes ago
- Fibre2Fashion
ICE cotton gains as US-EU pact lifts mood, oil adds support
ICE cotton futures closed higher on Monday following the announcement of a trade deal between the US and the European Union. The development lifted overall sentiment in the grain market. However, the EU is not a major buyer of US cotton due to its limited spinning capacity. Rising crude oil prices also supported US cotton, as higher oil prices tend to increase the cost of polyester fibre, making cotton relatively more attractive. ICE's most active December 2025 contract settled at 68.34 cents per pound (0.453 kg), up 0.11 cent. This marked the eleventh consecutive close around the 68-cent mark, indicating a stable and range-bound market. Other contracts settled 11 to 39 points higher. ICE cotton futures closed higher as a new US-EU trade deal lifted sentiment, though the EU remains a minor buyer of US cotton. Rising crude oil prices also supported cotton by making polyester more expensive. December 2025 cotton held near 68 cents/lb for an eleventh session. USDA rated 55 per cent of US cotton good-to-excellent. Brazil's July exports dropped 19 per cent year-on-year. Total trading volume reached 28,728 contracts, compared to 24,104 contracts cleared on Friday. ICE deliverable stocks remained unchanged at 21,617 bales as of July 25. The market responded positively to the newly announced trade agreement between the US and the European Union, reached on July 27. Under the deal, a 15 per cent tariff will be applied to EU goods exported to the US. Despite this, cotton prices remained largely within a narrow range, as the EU is not a key importer of US cotton. However, the overall boost to global sentiment helped lift commodity markets broadly. Stock markets responded more strongly, with the S&P 500 posting its sixth consecutive closing high and the Nasdaq also setting a record—reflecting a broader appetite for risk. Market analysts noted that the price uptick was mainly driven by the trade deal, with additional support coming from rising oil prices. NYMEX crude futures rose over 2 per cent on the day, fuelled by the US-EU deal and President Trump's decision to shorten the 50-day deadline for a resolution between Russia and Ukraine. Higher oil prices typically raise polyester costs, giving cotton a competitive edge. The weekly USDA Crop Progress Report, released after market close, showed 55 per cent of the US cotton crop rated good-to-excellent—down from 57 per cent the previous week but up from 49 per cent in the same week last year. Meanwhile, Brazil's Secretariat of Foreign Trade (Secex) reported that the country exported 111,707.33 tons of cotton in the first four weeks of July, averaging 5,879.33 tons per day—a 19 per cent decline from last July's daily average of 7,270.13 tons. As of the latest session, ICE cotton for December 2025 was trading at 68.23 cents per pound (down 0.11 cent). Cash cotton stood at 66.50 cents (up 0.64 cent). Other contract settlements were: October 2025 at 67.23 cents (down 0.17 cent), March 2026 at 69.63 cents (down 0.13 cent), May 2026 at 70.73 cents (down 0.13 cent), and July 2026 at 71.41 cents (down 0.21 cent). A few contracts remained unchanged, with no trades recorded. Fibre2Fashion News Desk (KUL)
