Latest news with #DrewryWCI
Fibre2Fashion
01-08-2025
- Business
- Fibre2Fashion
Drewry WCI falls again but stabilise after tariff-driven volatility
The Drewry World Container Index (WCI)—a composite measure of container freight rates—declined for the seventh consecutive week, falling by 0.71 per cent to $2,499 per 40-foot equivalent unit (FEU) on July 31, down from $2,517 per FEU the previous week. 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. Fibre2Fashion News Desk (KUL)
Fibre2Fashion
18-07-2025
- Business
- Fibre2Fashion
Drewry WCI falls for fifth week, downtrend may persist
The Drewry World Container Index (WCI)—a composite measure of container freight rates—declined for the fifth consecutive week, falling by 2.61 per cent to $2,602 per 40-foot equivalent unit (FEU) on July 17, down from $2,672 per FEU the previous week. This continued decline follows a period of volatility triggered by higher US tariffs announced in April. The market reaction was delayed by about a month, with rates beginning to rise in May and peaking in the first week of June. However, the trend has since reversed, with rates consistently falling since mid-June, indicating that the initial impact of the tariffs was short-lived. Drewry WCI fell for the 5th straight week, dropping 2.61 per cent to $2,602 per FEU on July 17. Rates have declined since mid-June, reversing gains from earlier tariff-driven hikes. Transpacific spot rates slipped further, though remain above early May levels. Drewry forecasts continued rate declines in H2 2025, citing weak demand and uncertainty over future US tariffs and penalties on Chinese vessels. Transpacific spot rates fell this week, with rates on the Shanghai–Los Angeles route down 4 per cent to $2,817 per FEU, and Shanghai–New York down 6 per cent to $4,539 per FEU. Despite the recent decline, both lanes remain above their levels from 10 weeks ago, when tariff concerns first began to drive rates higher. Spot rates from Shanghai to Los Angeles are still 4 per cent higher, while rates to New York are 24 per cent higher than on May 8. Drewry expects rates on these trade lanes to continue declining due to weak demand. Rates from Shanghai to Rotterdam dipped 1 per cent to $3,334 per 40-foot container, while Shanghai to Genoa fell 1 per cent to $3,450 per 40-foot container. Conversely, freight rates increased on several backhaul routes: Rotterdam to Shanghai rose 2 per cent to $495, New York to Rotterdam edged up 1 per cent to $876, and Rotterdam to New York increased by 1 per cent to $2,001 per 40-foot container. Drewry's Container Forecaster expects the supply-demand balance to weaken again in the second half of 2025, which will lead to further declines in spot rates. The volatility and timing of rate movements will largely depend on President Trump's future tariff decisions and potential capacity shifts related to US penalties on Chinese ships, which remain uncertain. Fibre2Fashion News Desk (KUL)
Fibre2Fashion
20-06-2025
- Business
- Fibre2Fashion
Drewry WCI falls 7.45%, after six weeks of gains
The Drewry World Container Index (WCI)—a composite measure of container freight rates—dropped for the first time in over a month, falling 7.45 per cent to $3,279 per 40-foot equivalent unit (FEU) on June 19, down from $3,543 per FEU the previous week. The index declined after six consecutive weeks of gains, mainly due to low demand for US-bound cargo. This suggests that the recent surge in US imports, triggered by the temporary halt of higher US tariffs, is unlikely to have the lasting impact initially anticipated. Drewry WCI fell 7.45 per cent to $3,279 per FEU on June 19, its 1st decline in over a month, due to weaker US-bound demand. Despite recent drops, spot rates remain significantly higher than six weeks ago. Drewry forecasts softening in the supply-demand balance in the second half of 2025, with rate volatility likely influenced by legal challenges to tariffs and new US penalties on Chinese vessels. Freight rates from Shanghai to New York fell 10 per cent to $6,584 per 40-foot container over the past week. However, spot rates remain significantly higher—up 81 per cent compared to six weeks ago (May 8). Rates to Los Angeles dropped 20 per cent this week but have risen 73 per cent over the same six-week period. Meanwhile, freight rates increased from Shanghai to Rotterdam by 12 per cent to $3,171, and from Shanghai to Genoa by 1 per cent to $4,075 per 40-foot container. However, Drewry's Container Forecaster expects the supply-demand balance to weaken again in the second half of the current year, likely causing spot rates to decline. The volatility and timing of rate changes will depend on the outcomes of legal challenges to Trump's tariffs and on capacity shifts related to the introduction of US penalties on Chinese ships—factors that remain uncertain. Fibre2Fashion News Desk (KUL)
Fibre2Fashion
13-06-2025
- Business
- Fibre2Fashion
Drewry WCI inches up, container freight rates jump 59% in 4 weeks
The Drewry World Container Index (WCI)—a composite measure of container freight rates—edged up by 0.45 per cent to $3,543 per 40-foot equivalent unit (FEU) on June 12, rising from $3,527 per FEU the previous week. The index has surged 59 per cent over the past four weeks, as President Donald Trump's 'pause' on import tariffs led to the resumption of US-bound traffic following the initial collapse in Transpacific volumes. Freight rates from Shanghai to New York rose by 2 per cent to $7,285 per 40ft container over the past week and by 67 per cent since May 15. Meanwhile, spot rates to Los Angeles increased by 1 per cent over the week and by 89 per cent over the past four weeks. Prices on the Transpacific eastbound route changed marginally amid a fresh injection of capacity. Drewry WCI rose 0.45 per cent to $3,543 per FEU on June 12, marking a 59 per cent increase in four weeks. Transpacific rates surged as US-bound traffic resumed following President Trump's pause on import tariffs. Rates to New York and Los Angeles rose sharply, while those to Europe remained stable. However, Drewry forecasts a rate decline in H2 2025 amid uncertain tariff policies and capacity shifts. Freight rates from Shanghai to Rotterdam and Genoa remained stable during the past week, at $2,837 and $4,054 per 40ft container, respectively. The recent sharp, short-term strengthening in the global container shipping supply-demand balance has reversed the declining rate trend that began in January. However, Drewry's Container Forecaster predicts the supply-demand balance will weaken again in the second half of 2025, likely leading to a decline in spot rates. The volatility and timing of rate changes will depend on the outcome of legal challenges to Trump's tariffs and on capacity adjustments linked to the introduction of US penalties on Chinese ships—both of which remain uncertain. Fibre2Fashion News Desk (KUL)
Time of India
29-04-2025
- Business
- Time of India
Govt reviews cargo hit from shut Pak airspace
NEW DELHI: Govt is assessing the impact of Pakistan's airspace closure on air cargo from India that is headed to the Gulf, Europe, and the US. Exporters suggest that the impact is not going to be significant. Tired of too many ads? go ad free now While most of the cargo moves by sea, around 3-4% of garments are exported on aircraft, either on passenger planes or freighters, with some gems and jewellery also taking that route. Similarly, some electronics are moved by planes, as are some perishables. However, exporters said the quantity is not significant enough to cause any major disruption. Govt's decision to ban the transshipment of cargo from Bangladesh will also help soften prices in India. Some pressure is expected towards the end of May, when some shipments will be front-loaded ahead of the July 9 deadline for reciprocal tariffs to kick in. When Trump announced tariffs at the start of April, companies rushed to ship goods to beat the deadline, with Apple shipping five plane-loads of products. Garment buyers and gems and jewellery exporters also saw large quantities of goods being shipped from India by air. The pressure on freight reduced after US President Donald Trump paused reciprocal tariffs for 90 days, along with a sharp fall in shipments from China. The Drewry WCI composite index fell 2% to $2,157 for 40-foot containers during the week ended April 24, with the rates from China seeing the sharpest fall in the wake of the tariff war. On a year-on-year basis, New York-Rotterdam rates have risen 32% but are down 36% for Rotterdam-Shanghai and 24% for Shanghai-Rotterdam. Tired of too many ads? go ad free now from Shanghai to New York decreased 3% or $95 to $3,611 per 40ft container during the week ended April 24. Those from Shanghai to Los Angeles and Rotterdam to Shanghai fell 2% to $2,617 and $481 per 40ft container, respectively. However, rates for containers from New York to Rotterdam rose 1% to $825, while costs on Shanghai-Genoa and Los Angeles-Shanghai routes remained stable. "Drewry expects rates to continue to decline in the coming week due to uncertainty stemming from reciprocal tariffs," the maritime research and consulting firm said.
