In the retreat phase the fare in the container market, as the over -supply of capacity due to new traditions shipthe slowdown in demand and the uncertainty about US President Trump’s tariff policies exert strong prices.
According to analysts, container fares are expected to be reduced next week, as marine carriers reduce capacity to adapt to slowing demand for gold week holidays in China, in which the factories will remain closed for eight days.
However, despite the fact that the market has been adapted by the diversions of ships around the cape of good hope by limiting the Suez crossings, so that the containers Ship can avoid possible Houthi Sea attacks, the shipping companies of containers continue to face a dysfunction.
The cost of transporting goods to commodities from China to Northern Europe has fallen to the lowest level since Houthi’s Houthi Sea attacks began to divert most of the world fleet around South Africa almost two years ago.
According to Drewry World Container Index, which measures the cost of transporting containers and published Thursday, the spot price for a 40 -foot container from Shanghai to Rotterdam fell to $ 1,735 last week, at the lowest level of mid -December 2023.
Uncertainty about US tariff policies has also caused containers market fluctuations this year, although the Spot price (offered without a long contract) from Shanghai to Rotterdam has declined for eight consecutive weeks as capacity exceeds demand.
Drewry’s latest price for goods transferred to Los’ Angeles from Shanghai has dropped, reaching $ 2,311 for a 40 -foot container, which is also the lowest price since mid -December 2023.
It is noted that the Drewry World Container Index (WCI) fell 8% to $ 1,761 per 40 feet, noting the 15th consecutive week, with prices on the main trade routes Asia-North America and Asia-Europe also downward.
Spot prices from Shanghai to Los Angeles dropped by 10% to $ 2,311 per 40 -foot container, while those from Shanghai to New York declined by $ 8% to $ 3,278 per 40 -foot container.
Asian-Europe spot prices dropped this week as they fell 9% ($ 1,735 per 40-foot containers) on the Shanghai-Rodterdam route and by $ 7% ($ 1,990 per 40-foot container) on the Shanghai-Genoa route.
Drewry’s Container Forecaster predicts that the increasing capacity from new ship traditions combined with the slower rise in demand is expected to weaken market balance, exerting pressure down on spot fares.
Cosco Shipping will keep its services in the US
However, the shipping giant Cosco Shipping Port has pledged to maintain its services in the US, despite the new port fees that the US side wants to impose on Chinese construction and ownership ships thereby trying to limit the influence of Beijing.
According to analysts, this could cost the Chinese group more than $ 1 billion in six months, an attitude that may cause prices war, as non -Chinese competitors avoid charges in an environment of weakened demand in the US.
Cosco Shipping’s refusal to succumb to the new port fees imposed by the US could lead to a “preventive price war” in transit trade, research company LinelyTica warned this week.
This comment came after the decision of the Orient Overseas (International) Ltd – one of Cosco’s two container companies, along with Cosco Shipping Lines – to follow her sister company and commit to maintaining her US market services, despite the burden of duties.
As announced by the United States Trade Representative (USTR), the new fees addressed to Chinese operators and ship owners will come into force on October 14, 2025.