Despite the significant decline in US imports due to President Donald Trump’s ongoing trade war, ocean container rates have yet to fully reflect the substantial drop in trans-Pacific volumes.
According to Drewry’s latest World Container Index released on Thursday, freight rates from Shanghai, China’s busiest container port complex, to Los Angeles, the largest US import gateway, have fallen by 2% to $2,617 per 40-foot container. Shanghai to New York has also experienced a 3% decrease, amounting to $95, to $3,611. In contrast, rates from Los Angeles to Shanghai have remained relatively stable.
These modest declines occur amidst the backdrop of US tariffs of up to 245% on certain Chinese exports, which have led to a substantial decline in US-bound exports. Shippers have canceled factory orders, carriers have increased blank sailings, and importers are scrambling to adjust their supply chains.
Drewry anticipates further rate declines in the coming week due to the uncertainty surrounding reciprocal tariffs. Additionally, rates from Rotterdam, Netherlands, to Shanghai have decreased by 2% to $481 per FEU, while Rotterdam to New York has fallen by 1% to $2,109 per FEU. Conversely, New York to Rotterdam has seen a 1% increase, amounting to $8, to $825 per FEU.
Rotterdam and other major European ports have been grappling with recent severe congestion.
The Drewry WCI composite index has also declined by 2% to $2,157 per FEU, representing a 79% drop from the previous pandemic peak of $10,377 in September 2021. However, this figure still stands at 52% higher than the pre-pandemic average of $1,420 in 2019.
