New Drewry data shows import demand boosting trans-Pacific rates

Drewry's latest World Container Index data reveals import demand driving up trans-Pacific freight rates. The index climbed 2% to $4,585 per 40-foot container, with increased rates on trans-Pacific and Asia-Europe routes thanks to robust U.S. import demand and carriers cutting capacity. Shanghai-to-Los Angeles rates rose 2% to $8,007, and Shanghai-to-New York rates increased 1% to $10,166.

Drewry predicts trans-Pacific rates will stay steady next week as U.S. import demand continues to bolster the market despite more ship capacity being available. Only two blank sailings are scheduled for trans-Pacific routes next week, compared to six this week, according to Drewry's Container Capacity Insight. The service monitors both canceled and scheduled sailings, as well as effective capacity and port congestion in key trade lanes.

Rates from Shanghai to Rotterdam climbed 3% to $3,632, while Shanghai-to-Genoa rates increased 5% to $4,152. In contrast, Asia-Europe routes face heightened sailings cancellations next week, with carriers announcing eight blank sailings, up from two this week. This tightening of capacity is exerting upward pressure on freight rates as Asia-Europe carriers seek to capitalize on the improving port conditions.

Port congestion in Asia has eased, with vessel waiting times in Shanghai dropping from 97 hours to 38 hours over the past few weeks. However, security risks persist, with only two container ships entering the Persian Gulf in Week 42, down from five the week prior. Meanwhile, sailings through the Suez Canal rose slightly, from 54 in Week 41 to 55 in Week 42.

The rise in trans-Pacific rates signals ongoing cost pressures on importers, even as port congestion improves in Asia. The strength of the U.S. economy is supporting trans-Pacific rates, while Asia-Europe carriers are canceling more sailings to reduce available capacity and increase prices, leaving importers' costs dependent on both cargo demand and carrier capacity decisions.