Latest news with #WCI
Yahoo
a day ago
- Business
- Yahoo
Drewry: Ocean rates fall for fifth straight week
Drewry's World Container Index (WCI) tracking ocean freight rates declined 2.6% this week, marking the fifth consecutive week of decreases. 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 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.
Fibre2Fashion
a day ago
- Business
- Fibre2Fashion
Drewry WCI falls for fifth week, downtrend may persist
The Drewry World Container Index (WCI)—a composite measure of container freight rates—declined for the fifth consecutive week, falling by 2.61 per cent to $2,602 per 40-foot equivalent unit (FEU) on July 17, down from $2,672 per FEU the previous week. This continued decline follows a period of volatility triggered by higher US tariffs announced in April. The market reaction was delayed by about a month, with rates beginning to rise in May and peaking in the first week of June. However, the trend has since reversed, with rates consistently falling since mid-June, indicating that the initial impact of the tariffs was short-lived. Drewry WCI fell for the 5th straight week, dropping 2.61 per cent to $2,602 per FEU on July 17. Rates have declined since mid-June, reversing gains from earlier tariff-driven hikes. Transpacific spot rates slipped further, though remain above early May levels. Drewry forecasts continued rate declines in H2 2025, citing weak demand and uncertainty over future US tariffs and penalties on Chinese vessels. Transpacific spot rates fell this week, with rates on the Shanghai–Los Angeles route down 4 per cent to $2,817 per FEU, and Shanghai–New York down 6 per cent to $4,539 per FEU. Despite the recent decline, both lanes remain above their levels from 10 weeks ago, when tariff concerns first began to drive rates higher. Spot rates from Shanghai to Los Angeles are still 4 per cent higher, while rates to New York are 24 per cent higher than on May 8. Drewry expects rates on these trade lanes to continue declining due to weak demand. Rates from Shanghai to Rotterdam dipped 1 per cent to $3,334 per 40-foot container, while Shanghai to Genoa fell 1 per cent to $3,450 per 40-foot container. Conversely, freight rates increased on several backhaul routes: Rotterdam to Shanghai rose 2 per cent to $495, New York to Rotterdam edged up 1 per cent to $876, and Rotterdam to New York increased by 1 per cent to $2,001 per 40-foot container. Drewry's Container Forecaster expects the supply-demand balance to weaken again in the second half of 2025, which will lead to further declines in spot rates. The volatility and timing of rate movements will largely depend on President Trump's future tariff decisions and potential capacity shifts related to US penalties on Chinese ships, which remain uncertain. Fibre2Fashion News Desk (KUL)
Fibre2Fashion
04-07-2025
- Business
- Fibre2Fashion
Drewry WCI falls for 3rd week on weak US-bound cargo demand
The Drewry World Container Index (WCI)—a composite measure of container freight rates—continued to decline for the third consecutive week, falling 5.73 per cent to $2,812 per 40-foot equivalent unit (FEU) on July 3, down from $2,983 per FEU the previous week. This decline is directly attributed to low demand for US-bound cargo and signals that the recent surge in US imports, which followed the temporary suspension of higher US tariffs, is unlikely to have a lasting impact as initially expected. Drewry World Container Index dropped 5.73 per cent to $2,812 per FEU on July 3 due to weak demand for US-bound cargo. Freight rates on major routes, including Shanghaiâ€'Los Angeles and Shanghaiâ€'New York, fell sharply week-on-week, though they remain higher than 8 weeks ago. Drewry expects further declines amid oversupply and uncertainty surrounding future US tariffs and penalties on Chinese vessels. Freight rates from Shanghai to Los Angeles fell 15 per cent to $3,180 per 40ft container over the past week, although spot rates remain 17 per cent higher compared to eight weeks ago (May 8). Similarly, spot rates from Shanghai to New York dropped 11 per cent to $5,070 per 40ft container but are still up 39 per cent over the same eight-week period. Drewry expects spot rates to continue declining next week due to excess capacity and weak demand. Freight rates from Shanghai to Genoa decreased 9 per cent to $3,751 per 40ft container, while rates from Shanghai to Rotterdam increased 8 per cent to $3,468 per 40ft container. However, Drewry's Container Forecaster anticipates a further weakening of the supply-demand balance in the second half of this year, which may lead to continued declines in spot rates. The volatility and timing of rate changes will depend on future US tariffs under Trump's policies and potential capacity adjustments related to the imposition of US penalties on Chinese vessels—factors that remain uncertain. Fibre2Fashion News Desk (KUL)
Fibre2Fashion
20-06-2025
- Business
- Fibre2Fashion
Drewry WCI falls 7.45%, after six weeks of gains
The Drewry World Container Index (WCI)—a composite measure of container freight rates—dropped for the first time in over a month, falling 7.45 per cent to $3,279 per 40-foot equivalent unit (FEU) on June 19, down from $3,543 per FEU the previous week. The index declined after six consecutive weeks of gains, mainly due to low demand for US-bound cargo. This suggests that the recent surge in US imports, triggered by the temporary halt of higher US tariffs, is unlikely to have the lasting impact initially anticipated. Drewry WCI fell 7.45 per cent to $3,279 per FEU on June 19, its 1st decline in over a month, due to weaker US-bound demand. Despite recent drops, spot rates remain significantly higher than six weeks ago. Drewry forecasts softening in the supply-demand balance in the second half of 2025, with rate volatility likely influenced by legal challenges to tariffs and new US penalties on Chinese vessels. Freight rates from Shanghai to New York fell 10 per cent to $6,584 per 40-foot container over the past week. However, spot rates remain significantly higher—up 81 per cent compared to six weeks ago (May 8). Rates to Los Angeles dropped 20 per cent this week but have risen 73 per cent over the same six-week period. Meanwhile, freight rates increased from Shanghai to Rotterdam by 12 per cent to $3,171, and from Shanghai to Genoa by 1 per cent to $4,075 per 40-foot container. However, Drewry's Container Forecaster expects the supply-demand balance to weaken again in the second half of the current year, likely causing spot rates to decline. The volatility and timing of rate changes will depend on the outcomes of legal challenges to Trump's tariffs and on capacity shifts related to the introduction of US penalties on Chinese ships—factors that remain uncertain. Fibre2Fashion News Desk (KUL)
Yahoo
13-06-2025
- Business
- Yahoo
China-to-US Freight Rates ‘No Longer Surging'—Is it All Downhill from Here?
After a series of weeks which saw trans-Pacific container prices double in the wake of a tariff truce between the U.S. and China, ocean freight rates may have already hit their summer seasonal peak. According to Hong Kong-based container shipping researcfh firm Linerlytica, rates have peaked after ocean carriers rolled back general rate increases (GRIs) from the previous two weeks as trans-Pacific capacity injections have still exceeded market demand. More from Sourcing Journal As Houthis Warn of 'War' Amid Israel-Iran Tensions, Red Sea Shipping Still Stagnant Trump Likely to Extend Tariff Pause as Negotiations Take Shape, Treasury Secretary Says Trump Touts Higher Duty Rate for Chinese Imports Under New Trade Deal A weekly update on Monday indicated that carriers are 'struggling to fill the ships' on the pathway to Los Angeles-Long Beach. Drewry's World Container Index (WCI), which saw ocean freight rates skyrocket 117 percent on the trans-Pacific trade lane in the four-week span prior to June 5, experienced a paltry 1 percent weekly jump to $5,914 per 40-foot container. The Shanghai-to-New York route had a major stabilization as well, shooting up 96 percent in a four-week span before inching up 2 percent to $7,285 per container. Overall, week-over-week totals across the WCI remained stable at $3,543 per 40-foot container. 'Global container shipping has addressed short-term capacity shortages and spot rates are now no longer surging, which will come as a relief to shippers,' said Philip Damas, head of Drewry Supply Chain Advisors. As carriers resumed suspended services and new carriers entered the market, Asia-to-West Coast ship capacity rose 16 percent month over month in June and is expected to increase another 8 percent in July, 'with far fewer cancelled sailings than in April/May,' Damas told Sourcing Journal. However, while GRI hikes are a lever ocean carriers often pull to capitalize on a surge in cargo and increase freight rates, the increased capacity forced them to pull back a week after taking effect. 'The June 1 GRI was fully implemented but failed to hold,' said Hua Joo Tan, co-founder of Linerlytica. 'Freight rates are dropping from their early June peak and will continue to fall back due to excess capacity as well as the absence of box shortages and port congestion. The mid-June GRI appears to be doomed for the same reasons.' According to a Thursday weekly update from Flexport, carriers have fully withdrawn planned June 15 GRIs for West Coast destinations. On the East and Gulf Coasts, GRIs remain in effect. Not everyone is anticipating such a quick fall, with Xeneta expecting an element of front-loading to still permeate throughout the original 90-day tariff rollback period. Xeneta's chief analyst, Peter Sand, said that 'mid-high' spot rates—rates paid by shippers in the 75th-highest percentile of the spot market—were the first batch that needed to get goods into the U.S. immediately and refill inventory. This cohort drove the sharpest rise in China-to-U.S. demand right after the rollback was announced May 12, he said. 'As we head into the second half of June, shippers benchmarking themselves against mid-low and average freight rates on the trans-Pacific headhaul will have to pay up as well,' Sand told Sourcing Journal. 'Still a tight market, but not tightening further to lift mid-high, as carriers are busy and soon done with bringing capacity back to the trans-Pacific trade lanes.' Adding onto the uncertainty is the U.S.-China tariff situation itself, which is still up in the air despite the Trump administration's insistence that there will be no more changes. Although representatives from the U.S. and China came to a new trade deal on Wednesday that establishes a combined duty rate of 55 percent on imports from China, there have been scant details surrounding the agreement. Additionally, neither Presidents Donald Trump nor Xi Jinping have officially approved the deal. 'There are still a lot of moving parts on the tariff front and this is unlikely to be the end as far as China tariffs are concerned,' Tan told Sourcing Journal. 'The cargo volume trajectory will also depend on the rest of tariff discussions that are yet to be finalized.' This refers to the other 90-day deadline for U.S. trade partners that were recipients of the reciprocal tariffs. Treasury Secretary Scott Bessent said Wednesday it is 'highly likely' the July 9 deadline would be extended. But with these de-escalations occurring, rates are likely to go on a downward slope if demand for carrier space weakens. 'Looking ahead, the end of the 90-day tariff pause and the probable early end of the peak season are expected to cause another downcycle in demand, another need for ship capacity changes and another sharp fall in spot freight rates from July,' said Damas. 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
