Drewry WCI recovers as exporters rush ahead of new tariffs

Shipping demand increased from Asia to the United States as exporters rushed to dispatch more shipments ahead of the announcement of reciprocal tariffs by the latter destination. However, freight rates continued to decline from the United States to Asia and Europe. The tariff issue has led to a reversal in shipping freight charges towards the US.

According to the weekly report, the index remains 79 per cent below its pandemic peak of $10,377 in September 2021. However, it is still 55 per cent higher than the pre-pandemic average of $1,420 in 2019.

The average year-to-date (YTD) composite index stood at $2,993 per 40-foot container, $105 higher than the 10-year average of $2,887 (which was inflated by the exceptional 2020–2022 COVID period).

Freight rates from Shanghai to Los Angeles increased by 10 per cent, or $239, to $2,726 per 40-foot container, while those from Shanghai to New York rose by 8 per cent, or $272, to $3,894 per 40-foot container. Conversely, spot rates from Rotterdam to Shanghai decreased by 7 per cent, or $34, to $466 per 40-foot container, and those from Shanghai to Genoa fell by 4 per cent, or $140, to $3,031 per 40-foot container. Rates from Shanghai to Rotterdam declined by 3 per cent, or $66, to $2,304 per 40-foot container, while those from New York to Rotterdam and from Rotterdam to New York dropped by 2 per cent to $831 and $2,124 per 40-foot container, respectively. Rates from Los Angeles to Shanghai declined by 1 per cent, or $4, to $705 per 40-foot container.

The Transpacific trade lane saw a reversal of its months-long trend of falling spot rates, due to recent sailing cancellations. The tariffs announced by Trump yesterday are expected to introduce greater volatility to these spot rates.

Fibre2Fashion News Desk (KUL)