Textile

Drewry WCI continues to weaken on Trump factor, higher capacity

17 Mar '25
2 min read
Drewry WCI continues to weaken on Trump factor, higher capacity
Pic: Adobe Stock

Insights

The Drewry World Container Index (WCI)—a composite measure of container freight rates—has seen a further sharp decline, falling by 6.80 per cent to $2,368 per 40-foot equivalent unit (FEU) on March 13, down from $2,541 per FEU the previous week. Global container freight demand showed no signs of improvement, and freight charges have been consistently falling on major routes. Higher shipping capacity and Trump factor continued to influence the global shipping freight business.

According to the weekly report, the index was 77 per cent below the previous pandemic peak of $10,377 in September 2021 and the lowest since January 2024. However, the index was 67 per cent higher than the average $1,420 in 2019 (pre-pandemic).

The average year-to-date composite index closed at $3,205 per 40ft container, $321 higher than the 10-year average of $2,884 (inflated by the exceptional 2020-22 COVID period).

The freight rates from Shanghai to Genoa decreased 11 per cent or $412 to $3,333 per 40ft container, while rates from Shanghai to Los Angeles fell 8 per cent or $260 to $2,906 per 40ft container. Similarly, rates from Shanghai to New York reduced 7 per cent or $282 to $4,038 per 40ft container and those from Shanghai to Rotterdam dropped 5 per cent or $124 to $2,512 per 40ft container.

Conversely, rates from Rotterdam to Shanghai, New York to Rotterdam and Rotterdam to New York increased 1 per cent to $490, $854 and $2,373 per 40ft container. Meanwhile, rates from Los Angeles to Shanghai remained stable.

Drewry expects rates to recede from next week as shipping capacity increases.

Market reports suggest that exporters preferred air shipment to meet the April 2 deadline set by the Trump administration for imposition of reciprocal tariffs on several countries, including India. The reciprocity of tariffs could lead to a steep rise in import duties on goods from multiple countries at US ports.

Fibre2Fashion News Desk (KUL)
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