Latest news with #WCI
Fibre2Fashion
3 days ago
- Business
- Fibre2Fashion
Global container rates surge 10% as US tariff pause spurs demand
The Drewry World Container Index (WCI)—a composite measure of container freight rates—shot up further by 10.19 per cent to $2,508 per 40-foot equivalent unit (FEU) on May 29, up from $2,276 per FEU the previous week. The index has increased 21 per cent in the last 3 weeks, as President Donald Trump's 'pause' on import tariffs led to a resumption of US-bound traffic after the initial collapse of trans-pacific volumes. The freight rates from Shanghai to Los Angeles have jumped 17 per cent to $3,738 per 40ft container in the past week and 38 per cent since May 8 (3 weeks ago). Spot rates to New York have risen 14 per cent in the past week and 42 per cent in the past 3 weeks. The Drewry World Container Index surged 10.19 per cent to $2,508 per FEU, marking a 21 per cent rise in three weeks as Trump's tariff pause spurred US-bound traffic. Rates from Shanghai to LA and New York soared up to 42 per cent. While this marks the first double-digit gain since July 2024, Drewry warns spot rates may decline again in H2 due to weak demand. During the week, freight rates from Shanghai to Rotterdam and Genoa have also risen by 6 per cent and 3 per cent, respectively. This was the first double-digit rise in the composite index since July 2024. The latest sudden, short-term strengthening in supply-demand balance in global container shipping has reversed the trend of declining rates which had started in January this year. However, Drewry's Container Forecaster expects the supply-demand balance to weaken again in the second half, which will cause spot rates to decline again in the second half of this year. The volatility and timing of rate changes will depend on the outcome of yesterday's legal challenges to Trump's tariffs and on capacity changes related to the introduction of the US penalties on Chinese ships, which are uncertain. Fibre2Fashion News Desk (KUL)
Fibre2Fashion
4 days ago
- Business
- Fibre2Fashion
Europe's ports face delays amid labour shortages, strikes
Port congestion is intensifying across major global trade routes, with Northern Europe's key hubs—including Antwerp, Rotterdam, Hamburg, and Bremerhaven—facing escalating backlogs and severe inland transport disruptions, according to Drewry. Bremerhaven has been particularly affected due to labour shortages during the recent holiday period, while low water levels on the Rhine have curtailed barge capacity out of Antwerp and Rotterdam, compounding logistical strain. Port congestion is worsening across key hubs in Northern Europe and major global ports like Shenzhen, Los Angeles, and New York, driven by labour shortages, strikes, and inland transport issues. Berth waiting times and logistics costs are rising sharply. Carriers are imposing surcharges, while spot rates surge amid an early peak season influenced by USâ€'China tariff uncertainty. At the Port of Antwerp-Bruges, operations were further strained by a nationwide strike on May 20, which temporarily disrupted vessel traffic. Kallo and Boudewijn Locks were affected, with Boudewijn Lock later restored to full operation by the evening. Although the impact was short-lived, it added pressure to already congested conditions across the region, maritime research and consulting firm Drewry said in its Logistics Executive Briefing. Berth waiting times reflect the severity of the congestion. At Antwerp, average waiting time rose from 32 hours in Week 13 to 44 hours in Week 20—a 37 per cent increase. Hamburg witnessed a 49 per cent jump from 34 to 50 hours, while Bremerhaven saw a 77 per cent surge over the same period. These port delays are having a cascading effect across the supply chain. Supply chain reliability is falling, logistics costs are climbing, and inland transport is becoming increasingly complex. The congestion is not confined to Europe alone. Similar trends have emerged in Shenzhen, Los Angeles, and New York, where the number of containerships waiting to berth has steadily increased since Week 17. At peak levels, up to 50 ships were waiting in Shenzhen, 42 in Los Angeles, and 14 in New York. Extended port delays are stretching transit times, disrupting inventory planning, and forcing shippers to carry surplus stock. Carriers are responding with rerouting strategies and congestion surcharges. Mediterranean Shipping Company (MSC), for example, is set to implement a congestion surcharge from June 1 on all shipments from Northern Europe to the Far East, further elevating freight costs, added the report. The strain is compounded by a potential early peak season in Transpacific eastbound trade, driven by a temporary 90-day pause in US—China tariffs, which expires on August 14. As a result, container spot rates have surged 27 per cent since early May. Rates from Shanghai to Los Angeles climbed from $2,590 on May 1 to $3,197 by May 22, 2025, according to Drewry's World Container Index (WCI). Similarly, rates to New York rose from $3,500 to $4,527 in the same period. General Rate Increases (GRIs) were successfully implemented on May 15, 2025, with additional GRIs and Peak Season Surcharges (PSSs) scheduled for June 1, 2025. The worsening congestion underscores the vulnerability of container shipping to disruption and reinforces the urgent need for resilient, adaptive supply chain strategies. In such a volatile landscape, access to real-time market insights—covering key indicators such as port congestion, blank sailings, and capacity—is critical for cargo owners seeking to make informed decisions, mitigate risks, and navigate continued uncertainty effectively, said Drewry. Fibre2Fashion News Desk (SG)
Yahoo
21-05-2025
- Business
- Yahoo
Trans-Pacific Freight Rates Soar as China Cargo Bookings Rebound
The 90-day reduction in tariffs on Chinese imports have sent bookings out of the country soaring almost immediately—and ocean spot freight rates are following suit. Numerous indices tracking rates on the trans-Pacific trade lane are seeing abrupt spikes in the cost to move cargo out of China toward to the U.S. More from Sourcing Journal US Footwear Manufacturers Tell Trump Tariffs Should Fund Onshoring Resurgence Trump Says US Will Set Tariff Rates For Trade Partners Canada Cools US Trade Tensions By Drawing Down Retaliatory Duties The Shanghai Containerized Freight Index (SCFI) released Friday said deliveries from Shanghai to U.S. West Coast ports soared 32 percent from the week prior to an index rate of $3,091 per 40-foot container. The Shanghai-to-U.S. East Coast route saw a healthy 22 percent week-over-week jump to $4,069. Drewry's World Container Index (WCI) saw weekly Shanghai-to-New York sailings take the highest growth rate at 19 percent to $4,350 per 40-foot container (FEU), while trans-Pacific routes reaching Los Angeles shot up 16 percent to $3,136 on average. For Drewry, both routes buoyed the total WCI composite across eight major East-West trade lanes, which increased 8 percent from the week prior, to $2,233 per container. Xeneta's newest data released Friday had Far East-to-U.S. West Coast average rates reaching $2,722 per FEU, with average East Coast-bound rates at $3,883. 'There is no time to waste for these shippers and the rush of cargo will put upward pressure on spot rates on trans-Pacific trades,' said Peter Sand, chief analyst at Xeneta, in a weekly update. 'Spot rates will peak and then flatten as carriers redeploy capacity to match demand, then rates will begin to slide again just as we saw in Q1. This is expected to happen over the next two to four weeks.' With rates naturally increasing due to the quick turnaround in ocean freight demand, container shipping liners no longer have to resort to artificially propping yields up by cutting capacity via methods like blank sailings or vessel swapping. According to Drewry's container capacity insight online tool, blank sailings from Asia to the West Coast of North America will decrease 28 percent month-on-month from 33 in May to 24 in June. The number of blank sailings from Asia to the East Coast of North America will decrease from 23 in May to 17 in June, a 23 percent drop. This will result in double-digit increases (or returns) of ship capacity to these trades, after the recent cuts. 'It is a feature of the current volatile macro-environment that ocean carriers are 'cancelling cancellations' of sailings,' Drewry said in a post on LinkedIn. 'We notice that the container shipping market is reacting to trade policy announcements with swings in trade volumes, capacity volumes and spot prices, similarly to the stock market.' CMA CGM, which saw freight bookings for China exports to the U.S. get cut by 50 percent after President Donald Trump began his escalation of tariffs on April 3, is another ocean carrier seeing the quick rebound in bookings. 'Trade will restart on this route very, very vigorously in the coming weeks and months,' said CMA CGM chief financial officer Ramon Fernandez during a first-quarter earnings call, calling the duty rollback an 'indisputably positive signal for maritime transport.' 'Everyone is expecting trade in June to be much more active than was feared just a few days ago,' said Fernandez. The carrier, which plans to invest $20 billion into the U.S. throughout Trump's presidency, posted a 12.1 percent increase in revenue to $13.3 billion in the first quarter on net income of $1.1 billion. Volumes carried ticked up 4.2 percent to 5.85 million 20-foot equivalent units (TEUs). Additionally, the French shipping conglomerate gave more color on the anticipated U.S. port docking fees on Chinese ships, with Fernandez indicating 'we will organize ourselves in order not to have to pay these fees.' He added that less than half of the company's 670 vessels were built in China. Fernandez said Ocean Alliance partners including China's Cosco Shipping and would adapt to the fees, although he did not say what the wider impact would be to the vessel-sharing agreement. CMA CGM has added peak season surcharges on trans-Atlantic trips to the U.S. as the tariff situation remains at an impasse. From June 1, all cargo headed for the U.S. from northern Europe will carry an extra fee of $400 per TEU or $800 per FEU. And from June 15, cargo from Mediterranean ports to the East and Gulf Coast will get a $500 surcharge. Maersk is slapping peak charges on China- and east Asia-originated cargo to U.S. and Canada as well, hitting them with an extra $1,000 per TEU and $2,000 per FEU. 'Given the tighter capacity on the trans-Pacific, ocean carriers are in the driver's seat to push freight rates meaningfully higher,' said Jefferies analysts in a research note Tuesday.
Fibre2Fashion
02-05-2025
- Business
- Fibre2Fashion
Drewry container index falls 3% amid ongoing tariff uncertainty
Drewry World Container Index (WCI)—a composite measure of container freight rates—further eased by 3.05 per cent to $2,091 per 40-foot equivalent unit (FEU) on May 1, down from $2,157 per FEU the previous week. Uncertainty following the tariff war is still affecting global trade. Due to changing cost dynamics after the imposition of a base tariff of 10 per cent on most countries, exports and imports remain sluggish. The index remained 80 per cent below the pandemic peak of $10,377 in September 2021. However, it was 47 per cent higher than the pre-pandemic average of $1,420 in 2019, according to the weekly report. Drewry World Container Index fell 3.05 per cent to $2,091 per FEU on May 1, 2025, amid ongoing trade uncertainty due to reciprocal tariffs. Freight rates declined on major routes, with Shanghaiâ€'Rotterdam and Shanghaiâ€'New York seeing notable drops. The index remains 80 per cent below its 2021 peak but is 47 per cent above 2019 levels. Drewry expects further rate declines in the coming week. The average year-to-date (YTD) composite index stood at $2,811 per 40-foot container, which is $82 lower than the 10-year average of $2,893 (inflated by the exceptional 2020–22 COVID period). Freight rates from Shanghai to Rotterdam decreased by 5 per cent, or $110, to $2,202 per 40-foot container. Rates from Rotterdam to Shanghai and Shanghai to Genoa declined by 4 per cent to $464 and $2,889 per 40-foot container, respectively. Continuing the trend, rates from Shanghai to New York and Rotterdam to New York fell by 3 per cent to $3,500 and $2,041 per 40-foot container, respectively. Rates from Los Angeles to Shanghai dropped by 2 per cent, or $16, to $689 per 40-foot container, while rates from Shanghai to Los Angeles decreased by 1 per cent, or $27, to $2,590 per 40-foot container. Meanwhile, rates from New York to Rotterdam rose by 2 per cent, or $17, to $842 per 40-foot container. Drewry expects rates to continue declining in the coming week due to ongoing uncertainty stemming from reciprocal tariffs. Fibre2Fashion News Desk (KUL)
Time of India
29-04-2025
- Business
- Time of India
Pakistan's airspace block unlikely to rattle India's cargo routes
India is assessing the impact of Pakistan's airspace closure on air cargo, though exporters say disruption will be limited as most goods move by sea. Air shipments of garments, gems, perishables and electronics may face pressure before the July 9 tariff deadline. Falling freight rates and a temporary pause in US tariffs have offered some relief. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads In response to Indian government downgrading diplomatic ties with Pakistan in the aftermath of the gruesome terrorist attack in Pahalgam in India's Kashmir, the neigbour country had shut its airspace to Indian airspace to foreign airlines can backfire economically, as it leads to a loss of lucrative overflight fees, risks tit-for-tat retaliation that hurts the national carrier, and disrupts tourism and trade flows. Such bans also increase operational costs for global airlines forced to take longer routes, potentially straining broader diplomatic while India is also considering closing its airspace to Pakistani airlines, according to a report in ET that quoted people familiar with the matter, Pakistan may not have dealt a sigificant cargo hit for Indian government is currently assessing how Pakistan's decision to shut its airspace may affect air cargo heading from India to regions such as the Gulf, Europe, and the United States. Exporters have said the disruption is unlikely to be significant, ToI the closure could require rerouting for certain flights, most Indian exports move by sea, keeping air-based cargo at a minimal level. According to exporters, only around 3-4% of garments are flown abroad, whether on passenger aircraft or dedicated freighters. A small quantity of gems and jewellery is also transported by air, alongside some perishables and electronics. Exporters believe the volumes of these air-based exports are not large enough to cause major government's recent move to ban cargo transshipment from Bangladesh is also expected to help ease pricing pressures in the Indian some stress may emerge towards the end of May, as exporters rush to send shipments ahead of the July 9 deadline for reciprocal tariffs. A similar situation unfolded when US President Donald Trump announced tariff hikes in early April. At that time, companies rushed to move products before the new duties came into effect. Apple alone reportedly shipped five plane-loads of goods in response. Exporters of garments as well as gems and jewellery also resorted to significant air freight Trump's decision to pause the reciprocal tariffs for 90 days, pressure on freight eased. The effect was further supported by a steep drop in shipments from China. During the week ending April 24, the Drewry World Container Index (WCI) composite dropped 2% to $2,157 for 40-foot containers, with the sharpest rate reductions seen in routes from China due to the tariff a year-on-year basis, container shipping rates between New York and Rotterdam rose by 32%. However, rates fell by 36% on the Rotterdam-Shanghai route and by 24% on the Shanghai-Rotterdam route. Freight rates from Shanghai to New York dropped 3%—or by $95—to $3,611 for a 40-foot container. Prices from Shanghai to Los Angeles and Rotterdam to Shanghai decreased 2% to $2,617 and $481 respectively for 40-foot the rate for containers moving from New York to Rotterdam edged up 1% to $825, while prices on the Shanghai-Genoa and Los Angeles-Shanghai routes held steady.'Drewry expects rates to continue to decline in the coming week due to uncertainty stemming from reciprocal tariffs,' maritime research and consulting firm Drewry said.(with ToI inputs)
