Container Shipping Rates Slide for 13th Week as Oversupply and Tariffs Weigh on Market

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  September 12th, 2025|Written by
Tim Jay

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Global container freight rates extended their losing streak this week, with the Drewry World Container Index (WCI) falling 3% to $2,044 per 40-foot container. This marks the 13th consecutive weekly decline, highlighting persistent pressure from oversupply and uncertain trade demand.

Read also: Container Shipping Profits Sink 56% in Q2 as US Tariffs Cloud Outlook

Trends across major trade lanes remain uneven. On the Transpacific, spot rates edged higher after carriers implemented General Rate Increases (GRIs). Shanghai–Los Angeles climbed 6% to $2,678 per FEU, while Shanghai–New York rose 2% to $3,743. However, Drewry cautioned that without deeper capacity cuts, these gains may prove short-lived, even with China’s Golden Week holidays approaching.

In contrast, Asia–Europe routes continue to face steep declines. Rates from Shanghai to Rotterdam dropped 10% to $2,143 per FEU, while Shanghai–Genoa fell 12% to $2,342. Carriers are struggling to manage an influx of new vessels against softening demand, intensifying downward rate pressure.

The weakness comes as U.S. import volumes are projected to trend lower through the rest of 2025, following a near-record summer peak. Ongoing tariff disputes are further clouding the trade outlook. Jonathan Gold, Vice President for Supply Chain and Customs Policy at the National Retail Federation, warned that escalating reciprocal tariffs have widened their impact across sectors and trading partners.

Legal challenges have added more uncertainty. A federal appeals court recently ruled against President Donald Trump’s reliance on emergency powers to impose tariffs, though the measures remain pending a Supreme Court appeal. Meanwhile, Trump delayed a tariff increase on Chinese imports until November 10 to allow further negotiations, even as a new 25% levy on Indian goods took effect in late August, doubling the tariff rate to 50%.

“Tariffs have had a significant impact on trade. The trade outlook for the final months of the year is not optimistic,” said Ben Hackett, founder of Hackett Associates.

Looking forward, Drewry’s Container Forecaster predicts further softening of the supply-demand balance in the second half of 2025, driving spot rates lower. The extent of volatility will depend heavily on tariff developments and the rollout of U.S. penalties on Chinese ships scheduled for mid-October. While Golden Week blank sailings may provide temporary relief, Drewry expects Asia–Europe rates to continue drifting down in the weeks ahead.

The ongoing slump marks a sharp reversal from the record highs seen during the pandemic and its aftermath, underscoring the cyclical nature of container shipping and its vulnerability to both macroeconomic and geopolitical shocks.