The Drewry World Container Index (WCI) fell 4% week-on-week this week (as of August 21) to approximately $2,/FEU.
Source: Drewry Supply Chain Advisors
The Drewry World Container Index (WCI) has declined for the tenth consecutive week. Spot freight rates on the trans-Pacific routes continued to fall this week, with the Shanghai-Los Angeles route down 3% and the Shanghai-New York route down 5%. The earlier phase, where accelerated purchasing by US retailers brought the peak season forward, has now ended. Due to the slowing US economy and increased tariff costs, retailers are cutting back on purchases. Consequently, Drewry expects reduced volatility in spot freight rates on these routes in the coming weeks.
Spot freight rates on the Asia-Europe routes also fell this week. Rates from Shanghai to Rotterdam dropped 6%, and rates from Shanghai to Genoa fell 3%. Despite strong demand in the European market and delays at major ports, the continuous increase in vessel capacity is driving down spot freight rates on these routes. Therefore, Drewry anticipates that spot rates will continue to decline in the coming weeks.
According to Drewry’s forecast, the supply-demand balance is likely to weaken again in the second half of the year, leading to another drop in spot freight rates. The extent and timing of these rate fluctuations will depend on the direction of Trump’s tariff policies and potential capacity adjustments triggered by the US “Section 301 investigation” into China, all of which are subject to uncertainty.
Source: Drewry Supply Chain Advisors
