Global container rates surge 10% as US tariff pause spurs demand
The Drewry World Container Index (WCI)—a composite measure of container freight rates—shot up further by 10.19 per cent to $2,508 per 40-foot equivalent unit (FEU) on May 29, up from $2,276 per FEU the previous week. The index has increased 21 per cent in the last 3 weeks, as President Donald Trump's 'pause' on import tariffs led to a resumption of US-bound traffic after the initial collapse of trans-pacific volumes.
The freight rates from Shanghai to Los Angeles have jumped 17 per cent to $3,738 per 40ft container in the past week and 38 per cent since May 8 (3 weeks ago). Spot rates to New York have risen 14 per cent in the past week and 42 per cent in the past 3 weeks.
The Drewry World Container Index surged 10.19 per cent to $2,508 per FEU, marking a 21 per cent rise in three weeks as Trump's tariff pause spurred US-bound traffic. Rates from Shanghai to LA and New York soared up to 42 per cent. While this marks the first double-digit gain since July 2024, Drewry warns spot rates may decline again in H2 due to weak demand.
During the week, freight rates from Shanghai to Rotterdam and Genoa have also risen by 6 per cent and 3 per cent, respectively. This was the first double-digit rise in the composite index since July 2024.
The latest sudden, short-term strengthening in supply-demand balance in global container shipping has reversed the trend of declining rates which had started in January this year.
However, Drewry's Container Forecaster expects the supply-demand balance to weaken again in the second half, which will cause spot rates to decline again in the second half of this year. The volatility and timing of rate changes will depend on the outcome of yesterday's legal challenges to Trump's tariffs and on capacity changes related to the introduction of the US penalties on Chinese ships, which are uncertain.
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