Drewry's World Container Index (WCI) has surged 10% this week to $2,508 per 40ft container, marking the first double-digit weekly rise since July 2024. This follows a 21% increase over the past three weeks, fuelled by a sharp rebound in U.S.-bound traffic after former President Donald Trump's "pause" on import tariffs.
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The policy shift has reignited transpacific trade volumes, reversing a months-long decline. Freight rates from Shanghai to Los Angeles jumped 17% in the past week alone to $3,738 per 40ft container—up 38% since 8 May. Rates to New York rose 14% in the last week and 42% over three weeks.
'This was the first double-digit rise in the composite index since July 2024,' Drewry reported, noting a 'sudden, short-term strengthening in supply-demand balance in global container shipping' that has temporarily halted falling rates seen since January.
European lanes also recorded modest increases, with Shanghai–Rotterdam rates up 6% and Shanghai–Genoa rates up 3%.
Despite the current gains, the outlook remains uncertain. '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 firm noted.
The trajectory of freight rates will likely depend on pending legal challenges to Trump's tariff policies and the potential impact of new U.S. penalties on Chinese shipping capacity. '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 U.S. penalties on Chinese ships, which are uncertain,' Drewry stated.
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Drewry
www.drewry.co.uk