Freight News, Logistics, Sea

Container Rates Decline Continues, Drewry

[ August 22, 2025   //   Gary Burrows ]

Drewry’s World Container Index, or WCI, decreased 4 percent to US$2,250 per 40-foot container the week of Aug. 31. It was the 10th consecutive weekly decline and continued to stabilize after a volatile period.

The unpredictability began, Drewry said, after U.S. tariffs were announced in April, which caused rates to surge from May through early June. Subsequently, the market saw a heavy decline until mid-July, after which the downward trend lost momentum and the rate of decrease slowed considerably.

Transpacific spot rates fell the week of Aug. 21, as Shanghai-Los Angeles rates were down 3 percent to US2,412 per 40-foot equivalent unit, or FEU, and those on Shanghai-New York also slid 5 percent to US$3,463/FEU.

Drewry said the phase of accelerated purchasing by U.S. retailers, which induced an early peak season, has ended. In response to a decelerating U.S. economy and increased tariff costs, they are now scaling back on procurement. Hence, Drewry expects spot rates to be less volatile in the coming weeks.

Asia-Europe spot rates declined this week, as rates on Shanghai–Rotterdam fell 6 percent (US$2,973/FEU) and on Shanghai-Genoa also down 3 percent (US$2,978/FEU). Despite healthy demand and port delays in Europe, a growing surplus of vessel capacity has been pushing down spot rates on this trade lane. Hence, Drewry expects spot rates to continue to decrease in the coming weeks.

Drewry’s Container Forecaster (https://tinyurl.com/4f5mbrwn) expects the supply-demand balance to weaken again in the second half of 2025, which will cause spot rates to contract. The volatility and timing of rate changes will depend on Trump’s future tariffs and on capacity changes related to the introduction of U.S. penalties on Chinese ships, which are uncertain, Drewry said.

Tags: Drewry World Container Index, Drewry's Container Forecaster