The Drewry World Container Index has reported a 1% drop in global container shipping rates, bringing the price down to $1,899 for a 40-foot container. This marks the seventh consecutive week of decline, attributed to an absence of the usual pre-Lunar New Year surge in cargo and the uncertainty stemming from new U.S. tariff policies. Typically, shipping rates spike as exporters rush to send goods before factory closures during the holiday, but this trend has not materialized this year.
Asia–Europe trade routes experienced considerable pressure this week, with Shanghai to Rotterdam rates falling 1% to $2,094 and Shanghai to Genoa dropping 2% to $2,826. Although shipping volumes usually rebound in March, Drewry anticipates that rates will remain under pressure due to increased capacity. Transpacific routes also faced declines, with Shanghai to Los Angeles rates down 1% to $2,191, while rates to New York stabilized at $2,771. In response, carriers have announced fewer blank sailings as production resumes post-Chinese New Year.
Wider market trends reflect increased uncertainty following a U.S. Supreme Court ruling that could reverse significant tariffs, potentially impacting over $90 billion in tariffs collected. In reaction, President Trump introduced a new 10% global tariff under Section 122 of the Trade Act, further complicating the trade landscape. Analysts caution that the container shipping industry may face oversupply as new vessel deliveries are expected to exceed market demand significantly over the next few years. This oversupply could lead to a potential 25% rate drop by 2026.
