Freight rates out on the ocean have continued their consistent descent since the start of 2025, capped over the past week by significant declines on both major Asia-to-North America trade lanes.
According to the Drewry World Container Index (WCI), spot freight rates from Shanghai to Los Angeles decreased 11 percent to $3,477 per 40-foot container, closely followed by the rates on the Shanghai-to-New York route, which declined 10 percent to $4,593 on average.
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The two routes were the driving force in the larger composite index, which saw a 6 percent decline to $2,629 per container. Since Jan. 2, rates across all trade lanes have declined nearly 33 percent.
Multiple factors had been holding up prices for containers entering the U.S., where imports were largely front-loaded throughout the winter. Shippers had brought in imports from China ahead of the inauguration of President Donald Trump in anticipation of additional tariffs, and had also flooded vessels with cargo ahead of a potential second union dockworker strike at the East and Gulf Coast ports.
As the front-loading has subsided, so have the rates. The slide also largely coincides with a normal years’ cadence, as shipping rates traditionally drop once Lunar New Year begins, when all of the Chinese factories are closed for two weeks at a time. As fewer ships exit Chinese ports to close out January, capacity out of the country opens.
While the steepest declines came out of the Asia-to-North America routes, Asia-to-Northern Europe routes have seen the largest decrease since the beginning of the year, as capacity wasn’t as impacted by the U.S.-based issues.
Since Jan. 2, Drewry says an average container from Shanghai to Rotterdam dropped 45 percent to $2,596 per 40-foot container, compared to a 31 percent decline on containers headed to Genoa in that same time frame, a 29 percent decrease in N.Y.-bound freight rates and a 28 percent dip for L.A.-destined boxes.
Market conditions prompt MSC to scrap a service line, reshuffle “megamax” ships
Mediterranean Shipping Company (MSC), the world’s largest ocean carrier by TEU capacity and the only major carrier unaffiliated in a vessel-sharing alliance, has made some shifts to its service in response to the demand.
MSC scrapped the Mustang service that it initially added in November as part of its standalone East-West network, which connected Asia to the Northwest U.S. and Canada.