Container shipping costs drop to lowest rates since December 2023

Container shipping costs have declined significantly, with the spot rate for a 40-foot container from Shanghai to Rotterdam dropping to $1,735 last week, marking the lowest rate since mid-December 2023. This decline represents the eighth consecutive weekly decrease in rates for shipments to Europe.

Additionally, shipping costs from Shanghai to Los Angeles have fallen to $2,311, also the lowest level since December 2023. The decrease in shipping costs is attributed to weaker global demand, ongoing price wars, and excess shipping capacity.

US import volumes are projected to continue their decline as the year comes to a close, with estimates indicating a 19% year-over-year decrease expected by January 2026. Global trade disruptions are currently affecting shipping and import activities.

For more information on related developments, see recent developments in the economy.