Latest news with #WorldContainerIndex
Yahoo
18-07-2025
- 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.
Yahoo
27-06-2025
- Business
- Yahoo
Drewry: No 'lasting impact' from tariff break as ocean rates fall again
Container rates are giving back recent gains, as U.S.-bound container traffic slumps after a surge fueled by the tariff pause. Shipping analyst and SONAR data partner Drewry saw its World Container Index fall 9% this week, the second consecutive weekly drop following five weeks of gains. 'This decline is a direct result of low demand for U.S.-bound cargo, and is a sign that the recent surge in imports to the United States, which occurred after the temporary halt of higher U.S. tariffs, will fail to have the lasting impact we had initially expected,' Drewry said in a note. SONAR data shows inbound loaded containers to U.S. ports approaching record 2024 levels. Rates from Shanghai to New York fell 13% to $5,703 per forty foot equivalent unit (FEU) container in the past week, but spot rates are still up a significant 56% compared to May 8. Spot rates to Los Angeles dropped 20% this past week, but are ahead 38% over the past seven weeks. Freight rates from Shanghai to Rotterdam and Shanghai to Genoa increased 1% to $3,204 and $4,100 per FEU, respectively. 'We expect the supply-demand balance to weaken again in 2H25, which will cause spot rates to decline,' the analyst said. 'The volatility and timing of rate changes will depend on the outcome of legal challenges to Trump's tariffs and on capacity changes related to the introduction of the U.S. penalties on Chinese ships, which are uncertain.' Container volume surged in the wake of the China-U.S. tariff ceasefire, which was announced April 12. On Friday, the U.S. announced it had come to an agreement with China on tariffs. Drewry's North American Container Port Throughput Index increased 2.2% month-over-month in April to 118.4 points, representing a strong 10.3% increase compared to the same period last year. The rolling 12-month average growth rate for North America saw a slight recovery, reaching 10.2%. Most major ports on the U.S. West Coast experienced rising volumes in April, both on a month-over-month and year-over-year basis. Long Beach continued its impressive start to 2025, with April throughput climbing 6.1% month-over-month and a significant 15.6% year-over-year. Neighboring Los Angeles also performed well, with handling up 8.3% month-over-month and 9.4% year-over-year, indicating robust activity across these critical gateways for trans-Pacific trade. The global index saw a modest month-over-month increase of 0.5% and a more substantial year-over-year rise of 5.6%. This upward trend is further reinforced by a stable rolling 12-month growth rate, holding at 6.5%. Looking at the year-to-date figures (January-April), North America and the Middle East-South Asia are leading the charge, both exhibiting robust growth of 9.7% and 9.6% respectively. Greater China is not far behind, at a 7.5% increase. Oceania was the sole region to report a decline, down 3.1%. Greater China's container ports demonstrated solid performance in April, as the regional throughput index climbed 2.3% month-over-month to 125.4 points, marking a 7.1% increase y/y. The rolling 12-month average growth rate for the region also improved, matching the global average at 6.5%. The top five Chinese ports collectively saw an average year-over-year increase of 10% in April. Shenzhen emerged as a particular standout, with its volumes surging by 15% year-over-year. Guangzhou also reported strong performance, with a 10.3% year-over-year increase, followed closely by Ningbo, which saw a 9.1% rise in throughput. In contrast, the Latin America Container Port Throughput Index experienced a dip in April, falling 3.2% month-over-month. The region's throughput remained up 2.8% on an annual basis. However, the rolling 12-month average growth rate for Latin America decreased to 9%. While still comfortably above the global average of 6.5%, this decline suggests a loss of momentum in this regional market. Following a surge in March, throughput at five Panama terminals decreased by 5% month-over-month in April, though it was still 1.5% above the April 2024 level. Brazil's Santos port saw flat volumes month-over-month but a 2% year-over-year increase in April. Even with an 11% month-over-month decline reported at Callao, Peru, its volumes remain 11% ahead on a year-over-year basis, highlighting the uneven performance across Latin American ports. Find more articles by Stuart Chirls Mideast shipping on high alert, Maersk re-opens Israel portMaersk unveils new AI platform to simplify customs tasks New Mideast tensions fail to boost trans-Pacific container rates US maritime chief Sola steps down The post Drewry: No 'lasting impact' from tariff break as ocean rates fall again appeared first on FreightWaves. Sign in to access your portfolio
Yahoo
23-06-2025
- Business
- Yahoo
Maersk stops Haifa service prior to Iran missile attacks
The world's second-largest container line suspended services to Israel's busiest port just prior to Iranian missile attacks. In an advisory Friday, Maersk (OTC: AMKBY) said, 'After carefully analyzing threat risk reports regarding the ongoing conflict between Israel and Iran, particularly the potential risks of calling specific Israeli ports and their implications for the safety of our crews, Maersk has made the decision to temporarily suspend vessel calls at the Port of Haifa, Israel and also suspend cargo acceptance for Haifa.' The carrier did not specify how long the suspension was expected to last. The region erupted in fresh conflict June 13 when Israel initiated aerial assaults on military and nuclear targets in Iran. The United States launched its own bombing missions on Saturday, also striking nuclear facilities. Tehran retaliated on Monday with direct missile attacks against several locations in Israel, with at least one missile striking Haifa, as well as a U.S. military base in Qatar. The increased tensions helped push up some container rates. SONAR data showed Drewry's World Container Index rates from Shanghai to Rotterdam increased from $2,825 on June 12 to $3,171 on June 19. Find more articles by Stuart Chirls rates surge, Maersk still sailing through Strait of Hormuz Solar to power half of Port Newark box terminal's energy needs New Freightos index: Israel-Iran conflict yet to hit shipping Tariff damage looms without new trade deal, says economist The post Maersk stops Haifa service prior to Iran missile attacks appeared first on FreightWaves. 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
Fibre2Fashion
06-06-2025
- Business
- Fibre2Fashion
Drewry WCI jumps 70% on rebound in US-bound shipping
Drewry's World Container Index (WCI) has increased by 70 per cent over the past four weeks, as President Donald Trump's 'pause' on import tariffs led to a resumption of US-bound traffic following an initial collapse in transpacific volumes. Freight rates from Shanghai to Los Angeles have surged 57 per cent in the past week to $5,876 per 40ft container, marking a 117 per cent increase since May 8 (four weeks ago). Spot rates to New York have risen by 39 per cent over the past week and by 96 per cent over the same four-week period, according to Drewry's WCI. Drewry's World Container Index has surged 70 per cent in four weeks, driven by a rebound in US-bound traffic after President Trump paused import tariffs. Freight rates from Shanghai to Los Angeles and New York have more than doubled since early May. While the current spike reverses earlier declines, Drewry expects spot rates to fall again in H2 due to weakening supply-demand balance. Freight rates from Shanghai to Rotterdam and Genoa have also increased in the past week, by 32 per cent and 38 per cent, respectively. The latest sharp, short-term strengthening in the global container shipping supply-demand balance has reversed the downward rate trend that began in January. However, Drewry's Container Forecaster anticipates that the supply-demand balance will weaken again in the second half of the year, causing spot rates to decline once more. The volatility and timing of these rate changes will depend on the outcomes of legal challenges to Trump's tariffs and on capacity shifts linked to the proposed US penalties on Chinese vessels, both of which remain uncertain. Fibre2Fashion News Desk (KUL)
Business Times
06-06-2025
- Business
- Business Times
Container shipping rates soar, impact on shippers outside China felt
[SINGAPORE] Sea cargo rates have surged, with those for the voyage from Shanghai to the US particularly steep, fuelled by pent-up demand and front-loading as shippers rush to beat the US-China trade truce expiry. However, the uncertainty on where the market heads from here has been flagged by analysts, given that new capacity has been added to the US-bound trade lanes and whether the volume surge will sustain after the 90-day window. The composite Drewry's World Container Index, which tracks weighted average spot rates on eight east-west routes, rose 41 per cent to US$3,527 per 40-foot container this week, based on its latest reading published on Thursday (Jun 5) night. The index showed that cargo rates have increased 70 per cent on average in the last four weeks. Cargo rates from Shanghai to Los Angeles had the biggest jump of 57 per cent to US$5,876 per 40-foot container in the past week and 117 per cent since May 8 – shortly before the world's top economy temporarily slashed tariffs against the Asian trade partner from 145 per cent to 30 per cent. Cargo rates from Shanghai to New York spiked 39 per cent in the past week and 96 per cent in the past four weeks. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up Maritime and shipping research and consulting services provider Drewry attributed the surge in cargo rates to US President Donald Trump's 'pause' on import tariffs, which has led to a resumption of US-bound traffic after the initial collapse of transpacific volumes in April. The spikes might have been for the China-US trade lanes, but shippers outside China are feeling the spillover effect. Pelaris Cheng, managing director of Singapore-based freight forwarder Hermes Logistics, told The Business Times that not only have container rates from Singapore to the east and central of America doubled since end-May, space on board was also hard to come by. She has since changed from containership to roll-on roll-off ships – known as RoRo for short – for her used-vehicle shipments, as RoRo charges are less volatile and have risen by less than containership rates. In contrast, she was able to enjoy 40 to 50 per cent lower rates in March for container shipping as the demand from China – which competes for container space – had eased then. Commenting on the cargo rates, container industry analyst at data provider Linerlytica Tan Hua Joo said there is little clarity on where the market heads from here as new capacity injections to the US starts to dampen rate momentum, while uncertainty remains over the sustainability of the volume surge after the tariff truce ends. Drewry commented that the present sudden, short-term strengthening in supply-demand balance in global container shipping has reversed the trend of declining rates which started in January. However, it expects cargo demand to dip in the second half and cause spot rates to decline. 'The volatility and timing of rate changes will depend on the outcome of legal challenges to Trump's tariffs and on capacity changes related to the introduction of the US penalties on Chinese ships, which are uncertain,' wrote Drewry in its weekly update. The Shanghai Containerized Freight Index, which follows 13 export trades out of Shanghai, is expected to post higher rates on Friday as well. The index posted a 30.7 per cent rise last week over the preceding week.
