HomeDrewry World Container Index Indicates Continued Decline in Global Freight Rates

Drewry World Container Index Indicates Continued Decline in Global Freight Rates

ShipUniverse: News Summary
Category Key Developments Industry Impact
Global Freight Rates Drewry’s composite index dropped 4% to $2,168 per 40-foot container, the lowest since January 2024 and down 79% from the 2021 peak. Signals continued freight market correction as supply outpaces demand; rates still 53% above pre-pandemic averages.
Trade Route Trends Rates declined on key lanes like Shanghai–LA, Rotterdam–NY, and Shanghai–Genoa, with modest increases on reverse transpacific routes. Reflects regional shifts in capacity use and demand, with westbound volumes under pressure and backhauls recovering slightly.
Economic Influences Improved port operations, easing congestion, and softer global demand continue to weigh on spot market pricing. Carriers may be pressured to reduce sailings or consolidate loops to maintain profitability amid weaker margins.
Stakeholder Outlook Drewry projects minor declines in the weeks ahead; shippers benefit from cost savings, while carriers adjust strategies. Forwarders, exporters, and terminals must remain agile in response to fluctuating freight trends and realigned shipping schedules.

The latest Drewry World Container Index (WCI), released on March 27, 2025, reveals a continued decrease in global container freight rates, reflecting ongoing adjustments within the maritime shipping industry.​

Key Highlights from the March 27, 2025, WCI Report

  • Composite Index Decline: The WCI composite index fell by 4% to $2,168 per 40-foot container, marking a 79% reduction from the peak of $10,377 in September 2021 and reaching its lowest point since January 2024. Despite this decline, the current index remains 53% higher than the pre-pandemic average of $1,420 in 2019.​
  • Year-to-Date Average: The year-to-date average composite index stands at $3,053 per 40-foot container, which is $167 above the 10-year average of $2,886. It's important to note that this 10-year average includes the exceptional rates experienced during the COVID-19 pandemic from 2020 to 2022.​

Route-Specific Rate Movements

  • Rotterdam to New York: Rates decreased by 7%, a reduction of $154, bringing the cost to $2,162 per 40-foot container.​
  • Shanghai to Los Angeles: Experienced a 6% drop, equating to $171, resulting in a rate of $2,487 per 40-foot container.​
  • Shanghai to Rotterdam and Shanghai to New York: Both routes saw a 4% decrease, with rates now at $2,370 and $3,622 per 40-foot container, respectively.​
  • Shanghai to Genoa: Rates fell by 3%, a $115 decline, setting the rate at $3,171 per 40-foot container.​
  • Rotterdam to Shanghai: Contrasting the general downward trend, this route experienced a 3% increase, rising by $16 to $500 per 40-foot container.​
  • Los Angeles to Shanghai: Saw a modest 1% uptick, with rates increasing by $7 to $709 per 40-foot container.​
  • New York to Rotterdam: Rates remained stable with no significant change reported.​

Factors Influencing the Decline in Freight Rates

Several elements contribute to the observed decrease in container freight rates:

  • Supply and Demand Imbalance: The global shipping industry is experiencing a mismatch between vessel capacity and cargo demand. An oversupply of shipping containers and vessels, coupled with fluctuating demand, has exerted downward pressure on freight rates.​
  • Port Congestion Alleviation: Improvements in port operations and reductions in congestion have facilitated more efficient cargo movement, leading to increased vessel availability and contributing to rate reductions.​
  • Economic Factors: Variations in global economic conditions, including shifts in manufacturing output and consumer demand, have influenced trade volumes, subsequently impacting freight rates.​

Implications for the Maritime Industry

The declining freight rates have several implications for stakeholders within the maritime industry:

  • Shipping Lines: Reduced freight rates may compress profit margins for shipping companies, prompting a reassessment of operational strategies, including potential adjustments to service offerings and cost structures.​
  • Shippers and Exporters: Lower freight rates can result in cost savings for shippers and exporters, potentially enhancing competitiveness in global markets. However, they must remain vigilant regarding service levels and transit times, which may be affected by carriers' cost-cutting measures.​
  • Port Authorities and Terminal Operators: Fluctuations in freight rates can influence cargo volumes passing through ports, impacting revenue streams and necessitating adaptive operational planning.​

Drewry anticipates that freight rates will continue to experience slight decreases in the coming weeks. Stakeholders are advised to monitor market developments closely and adapt strategies accordingly to navigate the evolving landscape of the maritime shipping industry.