Container spot rate slides continue as the revised tariff rates and deadlines keep the market on vigil
The Drewry World Container Index (WCI) extended its weekly decline that commenced Mid-June, led primarily by a decline in the Asia- North America Rates, with the other headhaul rates to Europe and the Mediterranean from Asia offering company on the downside.
The 5th straight week of decline in spot prices nearly nullify the 41% weekly uptick witnessed towards the end of May. While the rate hike in itself propelled post the tariff announcements, the current indicators point to a decline continuing, even as markets eye how the tariff impositions may change in August.
With new reciprocal tariff agreements springing in between the US and various trade partners from the 1st of August and the 90-day hold up period between the US and China ending on the 12th of August.
It is no secret that the demand-supply scales have tilted away from the supply side. It seems that from the demand side, a major portion of the cargo earmarked for the summer and back-to-school period to the US have either been shipped out or transshipped to the hubs in Europe.
The rates from China to Europe are still lingering at some of the highest price points seen in the last 6 months. The congestion scenarios also point towards pockets of congestion in Europe, and this trade lane is expected to keep the overall WCI in buoy for some time.
The WCI in general, is currently perched 8% below the 2025 average. One of the other piece of news rounding up in the Logistics World is that of the possible roadblock over completion of Hutchison’s non-Chinese portfolio sale with COSCO potentially entering the picture. How would this move end up or impact any upcoming announcements or geopolitical equations joins the waiting list of watchpoints.
The Drewry commentary does echo the market sentiment in view of the rates declining further, even as the vigil continues on tariff impositions and geopolitical situations. The Shanghai Containerized Freight Index (SCFI) which nearly foreshadows the price movements on the other global container indices, took a further 5% dive in its latest quote reported on 18th July 2025, echoing the predictions.
This article was written by Gautham Krishnan
Gautham Krishnan is a logistics professional with Fluor Corporation, in project logistics and analytics, and has worked in the areas of Project Management, Business Development and Government Consulting. A Project Logistics Professional and freight market analyst with over 100 articles across publications, Gautham was a winner of the 30-under-30 Rising Supply Chain Star in 2023-24 by Institute of Supply Management- ISM, USA and was also bestowed the AntwerpXL 40-under-40 award in the year 2023, as one of the upcoming, future leaders in the project logistics space.
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