Container Rates Reverse Course as January Rally Unravels on Weak Demand

Global container shipping rates fell sharply this week, erasing most of the gains from a brief January rally as weak demand and geopolitical uncertainty undermined carriers’ pricing power. The Drewry World Container Index dropped 4% to $2,445 per 40-foot container, reversing much of the prior week’s 16% increase.

The steepest declines occurred on Transpacific routes. Rates from Shanghai to New York fell 10%, and Shanghai to Los Angeles dropped 7%, despite the approaching Chinese New Year, which typically boosts demand. Drewry noted that carriers were unable to sustain higher rates due to underlying weakness in cargo volumes.

Asia–Europe lanes also softened, reflecting ongoing uncertainty in the Red Sea. Rates from Shanghai to Rotterdam fell 3%, while Shanghai to Genoa slipped 1%, as carriers remain hesitant to resume Suez Canal transits amid security risks linked to tensions involving Iran and the U.S.

Although Maersk has announced a permanent return to the Suez Canal for one service, most carriers remain cautious. Traffic around the Cape of Good Hope more than doubled week over week, highlighting continued rerouting.

Overall, the container market remains fragile and volatile heading into 2026, with unresolved Red Sea security risks and looming U.S.–China trade measures pointing to continued instability in freight rates.