Fashion
Drewry World Container Index drops for 10th week amid weak demand
Volatility began after US tariffs were announced in April, which pushed rates higher from May through early June. This was followed by a sharp decline until mid-July, after which the downward trend slowed considerably.
Drewry World Container Index (WCI) fell 4.25 per cent to $2,250 per FEU on August 21, its tenth straight weekly decline, as container shipping demand stayed weak.
Transpacific and Asia–Europe spot rates dropped, while some routes remained stable.
With US retailers scaling back purchases, Drewry expects less volatility, though tariffs and capacity shifts may drive further rate contractions in late 2025.
Transpacific spot rates weakened this week, with Shanghai–Los Angeles down 3 per cent to $2,412 per FEU, and Shanghai–New York down 5 per cent to $3,463 per FEU.
Rates on Shanghai–Rotterdam dropped 6 per cent to $2,973 per FEU, and Shanghai–Genoa fell 3 per cent to $2,978 per FEU. Meanwhile, Rotterdam–Shanghai gained 1 per cent to $477 per FEU. Rates held steady on Rotterdam–New York ($1,951), Los Angeles–Shanghai ($713), and New York–Rotterdam ($839).
The early peak season, driven by accelerated purchasing by US retailers, has ended. Facing a slowing US economy and higher tariff costs, retailers are now cutting back on procurement. Drewry therefore expects spot rates to be less volatile in the coming weeks.
According to Drewry’s Container Forecaster, the supply-demand balance is likely to weaken again in the second half of 2025, leading to further rate contraction. The scale and timing of changes will depend on future tariff actions by President Donald Trump and potential capacity adjustments linked to new US penalties on Chinese ships, both of which remain uncertain.
Fibre2Fashion News Desk (KUL)