Drewry WCI jumps 7.56% on eased US–China trade tensions

16 May '25

2 min read

Drewry WCI jumps 7.56% on eased US–China trade tensions

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Insights

Drewry World Container Index rose by 7.56 per cent to $2,233 per FEU on May 15, driven by easing US–China trade tensions.
Freight rates from Shanghai to New York and Los Angeles surged by 19 per cent and 16 per cent, respectively.
Despite remaining 80 per cent below the 2021 peak, it is 57 per cent higher than 2019 levels.
Drewry forecasts further Transpacific rate increases due to capacity shortages.

The Drewry World Container Index (WCI)—a composite measure of container freight rates—further bounced back, rising by 7.56 per cent to $2,233 per 40-foot equivalent unit (FEU) on May 15, up from $2,076 per FEU the previous week. The barometer measuring container freight rates has rebounded following the recent understanding between the US and China on trade issues. This development eased concerns over trade tensions after reciprocal tariffs were imposed by both sides. The latest trade agreement has raised hopes for a normalisation of exports from China to the US.

The index remained 80 per cent below the pandemic peak of $10,377 recorded in September 2021. However, it was 57 per cent higher than the pre-pandemic average of $1,420 in 2019.

The average year-to-date (YTD) composite index stood at $2,746 per 40ft container, $151 lower than the 10-year average of $2,896 (inflated by the exceptional COVID-19 period of 2020–2022).

Freight rates from Shanghai to New York surged by 19 per cent, or $704, to $4,350 per 40ft container, while rates from Shanghai to Los Angeles rose by 16 per cent, or $423, to $3,136 per 40ft container. Rates from New York to Rotterdam increased marginally by 1 per cent, or $10, to $824 per 40ft container.

Conversely, rates from Shanghai to Rotterdam, Shanghai to Genoa, and Rotterdam to New York decreased by 1 per cent to $2,035, $2,742, and $1,961 per 40ft container, respectively. Rates from Rotterdam to Shanghai and Los Angeles to Shanghai remained stable.

Following the latest US–China trade developments, Drewry expects Transpacific spot rates to increase in the coming week due to a shortage of capacity.

Fibre2Fashion News Desk (KUL)

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