Latest news with #DrewryWorldContainerIndex
Fibre2Fashion
6 days ago
- 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
25-07-2025
- Business
- Fibre2Fashion
Drewry WCI slides 3% as pre-tariff rush fades
The Drewry World Container Index (WCI)—a composite measure of container freight rates—declined for the sixth consecutive week, falling by 3.22 per cent to $2,517 per 40-foot equivalent unit (FEU) on July 24, down from $2,602 per FEU the previous week. 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)
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
04-07-2025
- Business
- Fibre2Fashion
Drewry WCI falls for 3rd week on weak US-bound cargo demand
The Drewry World Container Index (WCI)—a composite measure of container freight rates—continued to decline for the third consecutive week, falling 5.73 per cent to $2,812 per 40-foot equivalent unit (FEU) on July 3, down from $2,983 per FEU the previous week. This decline is directly attributed to low demand for US-bound cargo and signals that the recent surge in US imports, which followed the temporary suspension of higher US tariffs, is unlikely to have a lasting impact as initially expected. Drewry World Container Index dropped 5.73 per cent to $2,812 per FEU on July 3 due to weak demand for US-bound cargo. Freight rates on major routes, including Shanghaiâ€'Los Angeles and Shanghaiâ€'New York, fell sharply week-on-week, though they remain higher than 8 weeks ago. Drewry expects further declines amid oversupply and uncertainty surrounding future US tariffs and penalties on Chinese vessels. Freight rates from Shanghai to Los Angeles fell 15 per cent to $3,180 per 40ft container over the past week, although spot rates remain 17 per cent higher compared to eight weeks ago (May 8). Similarly, spot rates from Shanghai to New York dropped 11 per cent to $5,070 per 40ft container but are still up 39 per cent over the same eight-week period. Drewry expects spot rates to continue declining next week due to excess capacity and weak demand. Freight rates from Shanghai to Genoa decreased 9 per cent to $3,751 per 40ft container, while rates from Shanghai to Rotterdam increased 8 per cent to $3,468 per 40ft container. However, Drewry's Container Forecaster anticipates a further weakening of the supply-demand balance in the second half of this year, which may lead to continued declines in spot rates. The volatility and timing of rate changes will depend on future US tariffs under Trump's policies and potential capacity adjustments related to the imposition of US penalties on Chinese vessels—factors that 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)
