Trans-Pacific Container Rates Forecast to Rise Ahead of New US Tariffs
Trans-Pacific container rates are forecast to rise next week as the market reacts to the planned implementation of new tariffs in the US.
Port of Oakland (Credit: Sheila Fitzgerald / Shutterstock.com)
Drewry’s World Container Index (WCI) rose 2% to $3,986 per 40-foot container for the week of January 6-10, continuing an upward trend since December 12.
The WCI composite index is now 62% below its pandemic peak of $10,377 in September 2021, but remains 181% above its pre-pandemic average of $1,420 in 2019.
Year-to-date, the composite index averaged $3,946 per 40-foot container, $1,079 higher than the 10-year average of $2,867, which was impacted by the COVID-19 pandemic.
Freight rates from Shanghai to Los Angeles increased by 13% to $5,476 per 40-foot container, while those from Shanghai to New York increased by 10% to $7,085. Freight rates from Rotterdam to Shanghai also increased by 1% to $522.
In contrast, freight rates from Shanghai to Rotterdam fell by 8% to $4,375 per 40-foot container, and those from Shanghai to Genoa fell by 4% to $5,210. Similarly, rates from Los Angeles to Shanghai, New York to Rotterdam and Rotterdam to New York all fell 1% to $719, $828 and $2,698 per 40-foot container, respectively.
Although a preliminary agreement between the International Longshoremen’s Association (ILA) and the United States Maritime Trade Union (USMX) averted the threat of a January port strike, Drewry expects rates on the trans-Pacific trade to continue rising next week as a rush to move cargo ahead of the Trump administration’s upcoming tariffs kick in.
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Source: Phaata.com (via InsideLogistics)
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