25.06.30WCI Decreases 9% in Week 26

The World Container Index (WCI), an indicator for container freight rates on the eight main routes on the trans-Pacific, Asia-Europe and trans-Atlantic trades, decreased 9% from the previous week to $2,983 per FEU in Week 26, Drewry announced last Thursday.

The WCI fell 9% for the second consecutive week, following five weeks of gains. From a year earlier, it was 44% down. The week-on-week decline was a direct result of low demand for U.S.-bound cargo and a sign that a recent surge in imports to the U.S., which occurred after the temporary halt of higher U.S. tariffs, will fail to have the lasting impact initially expected.

On the trans-Pacific trade, freight rates from Shanghai to New York decreased 13% ($881) to $5,703 per FEU last week but improved a significant 56% from seven weeks ago (May 8). Spot rates from Shanghai to Los Angeles dropped 20% ($961) from the previous week but gained 38% over the last seven weeks.

On the Asia-Europe trade, rates from Shanghai to Rotterdam rose 1% ($33) to $3,204 per FEU, while those from Shanghai to Genoa picked up as much ($25) to $4,100 per FEU.

On the trans-Atlantic trade, freight rates from New York to Rotterdam fell 1% ($7) to $826 per FEU, but those from Rotterdam to New York stayed flat at $1,982 per FEU.

However, Drewry’s Container Forecaster expects the supply-demand balance to weaken again in the second half of this year, which would cause spot rates to decline. The volatility and timing of rate changes will depend on the outcome of legal challenges to U.S. President Donald Trump’s tariffs and on capacity changes related to the introduction of the U.S. penalties on Chinese ships, which are uncertain.