Drewry WCI rises as US-China tariff deal boosts demand

23 May '25

2 min read

Drewry WCI rises as US-China tariff deal boosts demand

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Insights

The Drewry World Container Index rose 1.88 per cent to $2,276 per FEU on May 22, driven by a US-China tariff agreement.
Rates from China to the US increased, while other routes remained stable.
The index is still 78 per cent below its 2021 peak but 60 per cent above 2019 levels.
Drewry expects spot rates to rise further as carriers adjust capacity to meet growing Chinese export demand.

The Drewry World Container Index (WCI)—a composite measure of container freight rates—increased further by 1.88 per cent to $2,276 per 40-foot equivalent unit (FEU) on May 22, up from $2,233 per FEU the previous week. Freight rates are rising following the recent agreement between the US and China on tariffs. Rates from China to the US were higher compared to the sluggish trend on other routes.

The index remained 78 per cent below the pandemic peak of $10,377 recorded in September 2021. However, it was 60 per cent higher than the pre-pandemic average of $1,420 in 2019.

The average year-to-date (YTD) composite index stood at $2,723 per 40ft container, $174 lower than the 10-year average of $2,897 (inflated by the exceptional 2020-22 COVID period).

Freight rates from Shanghai to Genoa and Shanghai to New York rose by 4 per cent to $2,841 and $4,527 per 40ft container, respectively. Rates from Shanghai to Los Angeles increased by 2 per cent, or $61, to $3,197 per 40ft container. Similarly, rates from Los Angeles to Shanghai rose marginally by 1 per cent, or $4, to $713 per 40ft container.

In contrast, rates from Shanghai to Rotterdam, Rotterdam to Shanghai, Rotterdam to New York, and New York to Rotterdam remained stable.

Following the latest US-China trade developments, Drewry expects spot rates to rise in the coming week as carriers reorganise capacity to accommodate increased cargo bookings from China.

Fibre2Fashion News Desk (KUL)

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