Drewry WCI falls 3.8% as Asia-Europe, Transpacific rates ease

The Drewry World Container Index (WCI) further decline on the second consecutive week ended July 23. The index slipped due to a decline in rates on Asia–Europe and Transpacific trade routes. The index fell 3.80 per cent to $4,374 per FEU (forty-foot equivalent unit), down from $4,547 per FEU a week earlier.On the Transpacific trade route, spot rates from Shanghai to Los Angeles decreased 6 per cent to $5,878 per 40ft container, while those from Shanghai to New York fell 4 per cent to $7,598 per 40ft container, due to increased capacity and easing demand. According to Drewry’s Container Capacity Insight, six blank sailings are scheduled on the Transpacific trade route next week, compared with nine scheduled this week, indicating higher capacity deployment by carriers and a widening supply–demand gap. Drewry expects rates to remain stable next week.

The Drewry World Container Index (WCI) fell 3.8 per cent to $4,374 per FEU in the week ended July 23, marking a second straight weekly decline as higher capacity and weaker demand weighed on Transpacific and Asia–Europe freight rates.
Middle East tensions and uncertainty over upcoming US tariffs are expected to keep freight markets volatile.

Additionally, the current 10 per cent global US import tariffs are set to expire on 24 July, while new tariffs are expected to take effect in early August, creating uncertainty for shippers.

Spot rates declined 5 per cent to $5,988 per 40ft container from Shanghai to Genoa, while rates from Shanghai to Rotterdam decreased 1 per cent to $4,824 per 40ft container. According to Drewry’s Container Capacity Insight, four blank sailings are scheduled on the Asia–Europe trade route next week, two more than last week, reflecting an increase in capacity available in the market. With easing demand and increased capacity, Drewry expects rates to decrease slightly next week.

Freight rates from New York to Rotterdam increased 1 per cent to $1,050 per FEU, while rates from Rotterdam to New York decreased 1 per cent to $2,635 per FEU. Rotterdam-Shanghai rates steadied at $607 per FEU, while Los Angeles-Shanghai rates rose 2 per cent to $839 per 40-foot container.

Geopolitical tensions involving the US and Iran, particularly ongoing concerns over the Strait of Hormuz, have prompted several carriers to announce Emergency Fuel Surcharges (EFS) effective from August 2026. Meanwhile, freight rates on the major East-West trade lanes declined for a second consecutive week as increased market capacity coincided with easing demand. Ongoing geopolitical developments and uncertainty surrounding US tariff policies are expected to continue influencing market conditions and freight rate trends in the coming weeks.

Fibre2Fashion News Desk (KUL)