Drewry: Ocean rates fall for fifth straight week
The analyst in an update said that the trend indicates a significant shift in market dynamics following a volatile period induced by increased U.S. tariffs in April, and a subsequent China-U.S. tariff pause. Although the tariffs initially caused a lagged market reaction that saw rates climbing in May and surging into early June, this upward trajectory has not been sustained as rates have steadily dropped since mid-June.
Trans-Pacific spot rates have also felt the impact, with prices from Shanghai to Los Angeles currently down by 4% to $2,817 per forty foot equivalent unit (FEU). Similarly, rates on the Shanghai to New York route have declined by 6%, to $4,539 per FEU.
Drewry said that despite these decreases, rates on both lanes remain higher than levels observed 10 weeks ago when tariff anxieties were initially escalating. Rates from Shanghai to Los Angeles are still up 4%, while those to New York have climbed by 24% compared to the figures on May 8.
The overarching decline in spot rates can largely be attributed to weakening demand, which is expected to persist according to Drewry's Container Forecaster. The outlook anticipates a further weakening of the supply-demand balance in the second half of 2025, which could invariably result in continued decreases in spot rates.
The future volatility and rate adjustments will hinge on subsequent trade policies, particularly any additional tariffs imposed by the Trump administration, and on potential capacity changes prompted by U.S. penalties on Chinese shipping lines.
Find more articles by Stuart Chirls here.Port of Oakland containers off 10% as 'recalibration' hits ocean supply chain
China could block sale of port terminals: Report
Amid uncertainty, sliding Asia-US container rates are a sure thing
Report: White House maritime chief leaving
The post Drewry: Ocean rates fall for fifth straight week appeared first on FreightWaves.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
3 minutes ago
- Yahoo
CPHI & PMEC Shenzhen 2025: Unlocking New Opportunities in Asia and the Greater Bay Area
SHANGHAI, July 21, 2025 /PRNewswire/ -- CPHI & PMEC China 2025 concluded in June with a record-breaking 109,056 attendees, underscoring strong demand within China's thriving pharma industry. Building on this success, CPHI & PMEC Shenzhen 2025 will take place from 1–3 September 2025 at Shenzhen Convention & Exhibition Center (SZCEC), addressing the growing demand for access to South China's key pharma markets. As a key gateway to the Guangdong-Hong Kong-Macau Greater Bay Area, Shenzhen is positioned to drive pharma innovation. The region's health industry GDP is projected to surpass 2 trillion CNY by 2028 and reach 2.5 trillion to 3 trillion CNY by 2030, offering unparalleled opportunities for growth and collaboration. CPHI & PMEC Shenzhen is set to achieve remarkable growth in 2025, doubling its size to 30,000 sqm of show floor and featuring over 600 selected exhibiting companies from various sectors of the pharmaceutical industry, including pharma ingredients, excipients, biotech, contract services, pharma machinery, packaging machinery, packaging materials and more. The event will expand product zones for natural supply, finished dosage, clean technology and laboratory instruments. A new 'Beauty & Cosmetics Supply Chain Zone' will showcase products and foster collaboration in this rapidly growing sector. During the exhibition, over 20 high-level forums will bring together regulatory authorities, academic experts, and corporate leaders to deliver in-depth analysis of policy shifts, technological breakthroughs, and emerging market dynamics. Key topics include new drug R&D, API process optimisation, CXO collaborations, emerging markets strategy, nutrition and health food development, natural ingredients and functional food development, injectable medical aesthetics innovation, pharma packaging solutions, pharma manufacturing 4.0, pharmaceutical engineering and more. To forge strategic partnerships, exclusive Hosted Buyer Matchmaking and Plant visit will be organized. These initiatives will facilitate meaningful interactions between suppliers and international buyers with specific purchasing demand. With its strategic location and curated focus, CPHI & PMEC Shenzhen 2025 is set to redefine pharma innovation in South China. The event offers unparalleled opportunities for networking, knowledge exchange, and collaboration, empowering attendees to unlock new growth horizons across Asia's thriving pharmaceutical sector. Register as a visitor before 1 August to enjoy complimentary VIP benefits: For more information, please visit: View original content to download multimedia: SOURCE CPHI & PMEC Shenzhen
Yahoo
3 minutes ago
- Yahoo
Chinese exports of two critical minerals plunge even as rare earths rebound
By Lewis Jackson BEIJING (Reuters) -China's exports of two critical minerals used in weapons, telecommunications and solar cells have plunged over the past three months amid a crackdown on smuggling and transshipment that has involved China's top spy agency. Exports of antimony and germanium in June were down 88% and 95%, respectively, versus January, according to customs data published on Sunday. Much as with rare earths, China is by far the largest miner and or refiner for both elements. Both were added to an export control list in 2023 and 2024, respectively. Exports to the U.S. were then banned in December as part of retaliation for chip restrictions. Rare earths were added to the same control list in April, precipitating a sharp collapse in export volumes that forced some carmakers in Europe and the U.S. to pause some production lines. But where rare earth export volumes rebounded sharply last month thanks to a deal struck between Washington and Beijing, exports of germanium and antimony fell to some of the lowest levels on record. The collapse in export volumes coincides with well-publicised crackdown on critical mineral export control evasion. China's spy agency said last week it had detected attempts to bypass controls via transshipment, where cargoes move through a third country before going on to their final destination. The week before Reuters reported that unusually large quantities of antimony were being exported to the United States from Thailand and Mexico in what appeared to be transshipment conducted by at least one Chinese company. China's exports of antimony to Thailand have collapsed by 90% after hitting a record in April. There have been no exports to Mexico since April. Spot market prices for high-purity germanium have more than doubled since China imposed export restrictions in July 2023. Antimony prices have nearly quadrupled from May last year.
Yahoo
3 minutes ago
- Yahoo
Nvidia CEO's China charm offensive underscores rock star status in key market
By Che Pan, Liam Mo and Casey Hall BEIJING/SHANGHAI (Reuters) -Nvidia CEO Jensen Huang is no stranger to Beijing, but his most recent visit, his third to China this year, cemented his rock star status in the country, where fans mingled freely with the AI titan on the streets of the capital. It was a rare sight for a chief executive of one of the world's most powerful companies to roam around Beijing, engage in wide-ranging interviews, take selfies with excited fans and even sign leather jackets - a signature clothing item of the billionaire - for his devoted followers. The tycoon at the helm of the world's most valuable company arrived in Beijing for a supply chain expo last week just days after meeting U.S. President Donald Trump and announced the AI giant would once again be able to sell its H20 chips in China following a U.S. ban in April on national security concerns. Huang's company is caught in the cross-hairs of a U.S.-China trade war that threatens to upend supply chains as both countries battle for global dominance in AI and other cutting-edge technologies, threatening Nvidia's $17 billion China business. While Huang appears to be navigating a delicate tightrope between Beijing and Washington well, the company remains subject to the ups and downs of Sino-U.S. tensions, analysts said. "Jensen Huang's visit aimed to demonstrate Nvidia's commitment to the Chinese market," said Lian Jye Su, a chief analyst at tech research firm Omdia. "However, this commitment must be balanced against potential U.S. government concerns about deepening ties with China." Huang described AI models from Chinese firms Deepseek, Alibaba and Tencent as "world class" and his official engagements included a "wonderful" meeting with Chinese trade tsar and Vice Premier He Lifeng and a face-to-face with Commerce Minister Wang Wentao. Demand for H20 chips surged in China following the launch of DeepSeek models in January. "Nvidia will still need to see the tide clearly and ride it at the right time to maximize the available benefits. But good for the company, I think it has a CEO who's very good at doing that," said Tilly Zhang, a technology analyst with Gavekal Dragonomics. Charlie Chai, an analyst with 86Research, said Nvidia's China market share was likely to slide in years to come. "The Chinese government will actively help or subsidize domestic rivals that can one day stand up to and, at least in some use cases, replace high-end Nvidia chips." SELFIES AND AUTOGRAPHS In an unusual sight for a global CEO visiting China, videos posted on social media platforms showed Huang wandering the streets of Beijing, drink in hand, signing notebooks and posing for selfies. In response to questions about how Washington would likely receive his latest visit to Beijing, the CEO said: "I told President Trump and his cabinet that I was coming to China. Told him about my trip here, and he said, 'Have a great trip'." At the opening of the China International Supply Chain Expo last Wednesday, Huang - who was born in Taiwan but moved to the U.S. at the age of nine - traded his signature leather jacket for a black, traditional Chinese-style jacket and referred to himself in a speech as "Chinese". In his Expo speech, as well as in later comments, Huang was effusive in his praise for Chinese tech giants' capabilities in bringing technology into applications, describing China's supply chain as "vast". Even arch rival Huawei Technologies, a firm that Nvidia is locked in a strategic and intensifying battle for AI chip dominance with, was lauded. "I think the fact of the matter is, anyone who discounts Huawei and anyone who discounts China's manufacturing capability is deeply naive. This is a formidable company," Huang told reporters. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
