Latest news with #DrewryWorldContainerIndex
Fibre2Fashion
2 days ago
- Business
- Fibre2Fashion
Drewry WCI falls 7.45%, after six weeks of gains
The Drewry World Container Index (WCI)—a composite measure of container freight rates—dropped for the first time in over a month, falling 7.45 per cent to $3,279 per 40-foot equivalent unit (FEU) on June 19, down from $3,543 per FEU the previous week. The index declined after six consecutive weeks of gains, mainly due to low demand for US-bound cargo. This suggests that the recent surge in US imports, triggered by the temporary halt of higher US tariffs, is unlikely to have the lasting impact initially anticipated. Drewry WCI fell 7.45 per cent to $3,279 per FEU on June 19, its 1st decline in over a month, due to weaker US-bound demand. Despite recent drops, spot rates remain significantly higher than six weeks ago. Drewry forecasts softening in the supply-demand balance in the second half of 2025, with rate volatility likely influenced by legal challenges to tariffs and new US penalties on Chinese vessels. Freight rates from Shanghai to New York fell 10 per cent to $6,584 per 40-foot container over the past week. However, spot rates remain significantly higher—up 81 per cent compared to six weeks ago (May 8). Rates to Los Angeles dropped 20 per cent this week but have risen 73 per cent over the same six-week period. Meanwhile, freight rates increased from Shanghai to Rotterdam by 12 per cent to $3,171, and from Shanghai to Genoa by 1 per cent to $4,075 per 40-foot container. However, Drewry's Container Forecaster expects the supply-demand balance to weaken again in the second half of the current year, likely causing spot rates to decline. The volatility and timing of rate changes will depend on the outcomes of legal challenges to Trump's tariffs and on capacity shifts related to the introduction of US penalties on Chinese ships—factors that remain uncertain. Fibre2Fashion News Desk (KUL)
Fibre2Fashion
13-06-2025
- Business
- Fibre2Fashion
Drewry WCI inches up, container freight rates jump 59% in 4 weeks
The Drewry World Container Index (WCI)—a composite measure of container freight rates—edged up by 0.45 per cent to $3,543 per 40-foot equivalent unit (FEU) on June 12, rising from $3,527 per FEU the previous week. The index has surged 59 per cent over the past four weeks, as President Donald Trump's 'pause' on import tariffs led to the resumption of US-bound traffic following the initial collapse in Transpacific volumes. Freight rates from Shanghai to New York rose by 2 per cent to $7,285 per 40ft container over the past week and by 67 per cent since May 15. Meanwhile, spot rates to Los Angeles increased by 1 per cent over the week and by 89 per cent over the past four weeks. Prices on the Transpacific eastbound route changed marginally amid a fresh injection of capacity. Drewry WCI rose 0.45 per cent to $3,543 per FEU on June 12, marking a 59 per cent increase in four weeks. Transpacific rates surged as US-bound traffic resumed following President Trump's pause on import tariffs. Rates to New York and Los Angeles rose sharply, while those to Europe remained stable. However, Drewry forecasts a rate decline in H2 2025 amid uncertain tariff policies and capacity shifts. Freight rates from Shanghai to Rotterdam and Genoa remained stable during the past week, at $2,837 and $4,054 per 40ft container, respectively. The recent sharp, short-term strengthening in the global container shipping supply-demand balance has reversed the declining rate trend that began in January. However, Drewry's Container Forecaster predicts the supply-demand balance will weaken again in the second half of 2025, likely leading to a decline in spot rates. The volatility and timing of rate changes will depend on the outcome of legal challenges to Trump's tariffs and on capacity adjustments linked to the introduction of US penalties on Chinese ships—both of which remain uncertain. Fibre2Fashion News Desk (KUL)
Fibre2Fashion
30-05-2025
- Business
- Fibre2Fashion
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. Fibre2Fashion News Desk (KUL)
Yahoo
29-05-2025
- Business
- Yahoo
Urban Outfitters Spurns Air for Ocean Freight as Tariffs Settle in
Urban Outfitters is taking on tariffs by shifting its primary mode of cargo transportation from air freight to ocean freight, cutting a major cost in its inbound logistics network. Even as trans-Pacific ocean freight rates have accelerated since the Trump administration's 145-percent tariffs on Chinese imports were scaled back for 90 days, ocean freight is generally significantly cheaper than air freight. As of September 2024, Drewry Airfreight Insights calculated that air cargo costs 5.6 times more to ship than its oceangoing counterpart. More from Sourcing Journal Trump Threatens EU With 50% Duties, Says Trade Talks 'Going Nowhere' April Retail Sales Were Rocky, in Line With Tariff Turmoil Trans-Pacific Cargo Space Vanishing Fast Ahead of Tariff Deadlines The air-to-sea conversion would protect margins, but won't come without its drawbacks. Urban Outfitters CEO and president Dick Hayne said the ocean-bound voyage adds about 30 days to delivery times. It remains unclear what percentage of cargo Urban Outfitters moves via ocean with the switch, or if the retailer has stopped shipping via air entirely. Sourcing Journal reached out to Urban Outfitters. 'There is always a risk as you go out in time that the fashion might not be as accurate as we would like it to be,' Hayne acquiesced in the Wednesday first-quarter earnings call, noting that the company is trying shorten that time period via merchandise planning and inventory management technologies. To account for the 30 extra days at sea, the lifestyle apparel retailer is planning to bring in fall product earlier in the second quarter. 'While there is some fashion risk of bringing product in early, we believe that it is prudent planning to bring in fall inventory—which is less sensitive to fashion—early, given the uncertain tariff outlook and any potential supply chain disruptions that could occur in the future,' said Urban Outfitters' chief financial officer Melanie Marein-Efron. With that in mind, Marein-Efron noted that the Anthropologie and Free People parent would likely see inventory growth ahead of sales growth in Q2. The shift runs counter to moves the retailer made during the Covid-19 pandemic, when supply chain congestion snarled activity at seaports worldwide. During the late-summer peak shipping season in 2021, the retailer pivoted to bring most of its inventory from Vietnam into the U.S. via air freight. This was due to the port congestion alongside record-high ocean spot freight rates that swelled north of $10,000 per container in September that year, according to the Drewry World Container Index (WCI). As of Friday, the average container costs $2,276. According to co-president and chief operating officer Frank Conforti, the company is also mitigating tariffs in ways similar to its retail counterparts: shifting countries of origin where possible, negotiating better terms with vendors and sparingly raising prices. The retailer is already well-hedged against the higher tariffs levied on China, with the country representing less than 5 percent of worldwide production. India, Vietnam, and Turkey are the retailer's three largest countries of origin, with no single country accounting for more than 25 percent of production. 'Over the last several years the teams have worked hard to diversify our countries of origin as well as dual source most of our own brand products,' said Conforti. 'This means many of our products are made in two different origins, enabling us to shift production from one country to another if needed.' Urban Outfitters had a strong first quarter in the face of the tariff concerns, with net sales jumping 10.7 percent to a record $1.3 billion. The retailer also generated a record $108.3 million. But the forward-looking projections for margins were a promising sign for the business, with the company expecting to achieve 50 to 100 basis points of gross margin improvement for the fiscal year. Stock has jumped more than 22 percent since the Wednesday earnings call. Urban's shift to ocean freight reflects a wider trend as more companies scramble to import cargo into the U.S. ahead of the July 9 country-specific tariff deadline and the Aug. 14 China duty deadline. For the week ending May 12, U.S. import bookings expanded 48.5 percent from the week prior, according to data from container tracking platform provider Vizion. But with the flood of cargo back on the oceans, a shortage of capacity is already rearing its head across container shipping. Multiple freight forwarders have indicated that additional space isn't expected to open until June, as shippers also sought to get ahead of peak season surcharges and general rate increases (GRIs) set to be implemented that month. Earlier this week, American Shipping Company told customers that booking requirements are now at a minimum of three to four weeks before the target vessel sailing date. Maritime trade advisory service Sea-Intelligence issued warnings Thursday that in the immediate future, 'there is not yet a meaningful injection' of new capacity on trans-Pacific trade to the North American West Coast. 'This development, or lack thereof, to the West Coast becomes even more noteworthy in the face of the development to the East Coast, where it does appear that there is already some attempt to increase capacity, relative to a week ago,' said Alan Murphy, CEO of Sea-Intelligence, in the weekly update. According to Sea-Intelligence, there is a continuing year-over-year reduction in ocean freight capacity to both coasts until the start of June, before the West Coast availability tapers off again throughout the month. 'The West Coast only sees a meaningful increase from mid-July, whereas the East Coast sees a significant capacity growth from end-June,' Murphy said. 'But this is still very late for a capacity increase, if there is an imminent surge of cargo from China.' Sign in to access your portfolio
Yahoo
23-05-2025
- Business
- Yahoo
Drewry: China-US container rates up by double digits
That didn't take long. Container freight rates out from China to the United States are surging after the trading partners agreed to pause tariffs. Freight rates from Shanghai to New York surged 19% or $704 to $4,350 per 40-foot container, and those from Shanghai to Los Angeles shot up 16% or $423 to $3,136 per 40-foot container, according to maritime consultant Drewry. Rates from New York to Rotterdam, Netherlands, Europe's busiest port, increased just 1% or $10 to $824 per container. Prices from Shanghai to Rotterdam, Shanghai to Genoa, Italy, and Rotterdam to New York fell 1% to $2,035, $2,742 and $1,961, respectively. Rates from Rotterdam to Shanghai and Los Angeles to Shanghai were a note, Drewry said it expects an increase in trans-Pacific spot rates in the coming week due to a shortage in capacity following the latest U.S.-China trade developments. The Drewry World Container Index composite prices increased 8% to $2,233, 78% below the previous pandemic peak of $10,377 in September 2021. However, the index was 57% higher than the average $1,420 in 2019, pre-pandemic. The average YTD composite index closed at $2,746, $151 lower than the 10-year average of $2,896 inflated by COVID in more articles by Stuart Chirls sees record containers amid tariff frenzy Zim profit up on higher container volume, rates No container tsunami heading to Los Angeles, says port chief US trade representative holds second hearing on Chinese ship fees The post Drewry: China-US container rates up by double digits 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
