Drewry WCI slips 3% on soft demand, trade policy disruption

18 Apr '25

2 min read

Drewry WCI slips 3% on soft demand, trade policy disruption

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Insights

Drewry World Container Index fell 3.22 per cent to $2,192 per FEU on April 17 due to weak demand and trade uncertainty from tariff tensions.
Freight rates dropped across major routes, notably Shanghai to New York and Los Angeles.
YTD rates averaged $2,897, slightly above the 10-year average.
Drewry anticipates further declines amid reduced capacity and ongoing disruptions from US trade policy.

The Drewry World Container Index (WCI)—a composite measure of container freight rates—slipped by 3.22 per cent to $2,192 per 40-foot equivalent unit (FEU) on April 17, down from $2,265 per FEU the previous week. Increased capacity and uncertainty in global trade due to the tariff war dampened sentiment in the freight shipping market.

According to the weekly report, the index remains 79 per cent below its pandemic peak of $10,377 in September 2021. However, it is still 54 per cent higher than the 2019 pre-pandemic average of $1,420.

The average year-to-date (YTD) composite index stood at $2,897 per 40ft container—$7 higher than the 10-year average of $2,890 (inflated by the exceptional 2020–22 COVID period).

Freight rates from Shanghai to New York decreased by 7 per cent, or $270, to $3,706 per 40ft container, while rates from Shanghai to Los Angeles fell by 5 per cent, or $132, to $2,683. Similarly, rates from Shanghai to Rotterdam and Shanghai to Genoa dropped by 2 per cent to $2,344 and $3,018, respectively. Rates from New York to Rotterdam and Rotterdam to New York declined by 1 per cent to $817 and $2,129, respectively.

Conversely, rates from Rotterdam to Shanghai increased by 4 per cent, or $18, to $493 per 40ft container. Meanwhile, rates from Los Angeles to Shanghai remained stable.

Drewry expects rates to continue declining in the coming week due to reduced capacity and ongoing uncertainty stemming from tariffs. The US’ latest trade policy has severely impacted the container shipping trade. Exporters and importers are facing significant uncertainty and disruption in global commerce.

Fibre2Fashion News Desk (KUL)

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