The Drewry World Container Index reported that global container shipping rates have dropped by 1% this week, reaching $1,899 for a 40-foot container. This marks the seventh week in a row that rates have declined, as the expected increase in cargo before the Lunar New Year did not happen, compounded by new U.S. tariff policies adding uncertainty to trade routes.

The ongoing decline in the Index highlights a unique situation across major trade routes. Since early January, rates have been consistently falling, which is unusual compared to the typical seasonal trend where exporters rush to ship goods before factories close for the holiday.

This week, Asia–Europe trade routes experienced the most significant drops. Spot rates from Shanghai to Rotterdam decreased by 1% to $2,094 for a 40-foot container, while rates from Shanghai to Genoa dropped 2% to $2,826. Normally, volumes bounce back in March as factories in Asia reopen, but Drewry anticipates that rates will stay under pressure due to increased shipping capacity. Therefore, spot rates in this sector are expected to decline further in the coming weeks.

Transpacific routes faced similar challenges. Spot rates from Shanghai to Los Angeles fell by 1% to $2,191, while rates from Shanghai to New York remained steady at $2,771 per 40-foot container. Drewry’s Container Capacity Insight noted that carriers have announced 9 canceled sailings for the upcoming week on Transpacific East and West Coast trade lanes. This is fewer than last week as factories in China gradually resume full production after the New Year celebrations.

The current rate situation is taking place amidst a backdrop of increased policy uncertainty. Shortly after the U.S. Supreme Court invalidated extensive tariffs imposed under emergency powers, which could lead to refunds on over $90 billion in collected duties, the Trump administration acted swiftly to maintain its trade agenda.

On February 20, just hours after the court ruling, President Trump announced a new 10% global tariff for 150 days under Section 122 of the Trade Act of 1974. This new tariff began on Tuesday, but confusion arose when the rate stayed at 10% despite earlier indications that it might increase to 15%. The administration is now looking into other options to reinstate tariffs, “including an immediate 10% global tariff with plans to increase it to 15%, creating uncertainty in policies,” as outlined in Drewry’s report.