News
The World Container Index (WCI) fell 3.3% from the previous week to $2,517 per FEU in Week 30, marking its sixth consecutive weekly decline. From a year earlier, the index plunged 57%.
This ongoing downturn follows an earlier period of volatility triggered by higher U.S. tariffs announced in April. The market reaction to the tariffs was delayed by one month, with rates beginning to climb in May and surging through the first week of June. However, this trend has since reversed, with rates falling consistently since mid-June, indicating that the tariff's initial market impact was not sustained.
Trans-Pacific spot rates fell this week, with those from Shanghai to Los Angeles down 5% ($142) to $2,675 per FEU and from Shanghai to New York down 7% ($329) to $4,210 per FEU. With a temporary halt on higher U.S. tariffs for Chinese products ending in mid-August, shipping lines are cutting back on services across the Pacific by cancelling more sailings. Since the big rush to ship cargo before the tariff increase is now over, Drewry expects spot rates on this trade lane to continue declining next week.
