Global container shipping rates escalated dramatically, with Drewry’s World Container Index (WCI) increasing 41% this week to reach $3,527 per 40ft container.
The London-based shipping consultancy today indicated that the WCI has increased 70% in the last 4 weeks, as President Donald Trump’s “pause” on import tariffs led to a resumption of US-bound traffic after the initial collapse of transpacific volumes.
Freight rates from Shanghai to Los Angeles have jumped 57% to $5,876 per 40ft container in the past week and 117% since 8 May (4 weeks ago). Spot rates to New York have risen 39% in the past week and 96% in the past 4 weeks.
Freight rates from Shanghai to Rotterdam and Genoa have also risen in the past week, by 32% and 38%, respectively.
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.
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 legal challenges to Trump’s tariffs and on capacity changes related to the introduction of the US penalties on Chinese ships, which are uncertain.”
(Dreamstime photo of containership)