Drewry Data Reveals Deep Challenges in Container Shipping Market

The global container shipping market is currently mired in multiple challenges, enduring significant pressure. Recent shifts in global trade patterns, driven by complex geopolitical factors, have led to frequent trade policy changes—including tariff adjustments and increased trade barriers—severely disrupting stable cargo flows and shipping route planning.

6% of Major Routes Canceled

Between Week 33 (August 11–17) and Week 37 (September 8–14), 43 out of 720 scheduled sailings on major East-West trade routes are expected to be canceled, a 6% cancellation rate. Most cancellations are on the Transpacific Eastbound route (49%), followed by Asia-North Europe/Mediterranean (33%) and Transatlantic Westbound (19%).

During this period, 94% of weekly scheduled sailings are expected to operate as planned.

Freight Rates Decline for Eight Straight Weeks

Freight rates continue to face downward pressure. As of August 7, Drewry’s World Container Index (WCI) fell for the eighth consecutive week, dropping 3% week-on-week to $2,424.

Transpacific rates declined by 6%, while Asia-Europe/Mediterranean rates saw a modest 2% increase. Transatlantic rates remained flat, with further softening expected.

Market unpredictability began in April when the U.S. announced new tariffs, triggering a surge in freight rates from May to early June. Subsequently, rates plummeted until mid-July, after which the decline slowed significantly.

This week, Pacific spot rates fell again, with Shanghai-Los Angeles rates dropping 4% ($2,534 per FEU) and Shanghai-New York rates down 7% ($3,826 per FEU). With the peak shipping season now over, Drewry expects spot rates to stabilize in the near term.

Supply-Demand Imbalance to Worsen in Late 2025

The supply-demand balance is expected to deteriorate again in the second half of 2025, leading to further rate contractions. The timing and volatility of these fluctuations will depend on uncertain factors, including potential future tariffs under a Trump administration and U.S. penalties on Chinese vessels, which could impact capacity.