As of April 24, 2025, the composite index — which measures the average cost of shipping a 40-foot container across major trade routes — has fallen to $2,157, representing a 2% decrease week-over-week and a 20% drop compared to the same period last year.

This overall decline reflects a shipping industry in transition, with specific routes experiencing varying degrees of cost adjustments, influenced in part by the easing of tariffs and trade tensions that previously inflated freight costs.

Route-Specific Highlights:

Shanghai to Los Angeles:* Freight rates on this vital West Coast route have decreased by 2% over the past week, now averaging *$2,617** per 40-foot container. Compared to last year, rates are down 23%, signaling a significant cooling in demand for outbound shipments from China’s primary export hub to the U.S. West Coast. This decline is partly influenced by the easing of tariffs that previously added costs to imports, as trade tensions between the U.S. and China have shown signs of stabilization.

Shanghai to New York:* The transpacific route to the U.S. East Coast has seen a 3% decline, with current rates at *$3,611** per 40-foot container. This marks a 17% decrease from the same period last year. The reduction in tariffs and trade barriers has played a role in easing overall shipping costs, contributing to more predictable and potentially lower freight rates for shippers, despite ongoing trade tensions.

Impact of Tariffs on Freight Rates

Tariffs have historically exerted significant influence on freight costs, especially on transpacific routes. During periods of intensified trade tensions, tariffs often led to increased costs for importers and exporters, which were frequently passed along in freight rates. The recent easing or removal of certain tariffs has contributed to the downward trend in shipping costs, providing some relief to supply chain stakeholders.

However, ongoing uncertainties surrounding trade policies and tariffs continue to add a layer of complexity, making it essential for companies to stay informed and flexible in their logistics planning.

Market Outlook

The steady, modest reductions in freight rates on these routes suggest the shipping industry is moving toward a more balanced state after recent congestion and disruptions. Coupled with the easing of tariffs, these trends could support more stable and predictable freight costs in the months ahead.

Experts will closely monitor geopolitical developments and trade negotiations, as these factors remain critical in shaping future freight rate movements. A stabilization in tariffs and trade policies could further support downward pressure on freight costs and enhance global supply chain resilience.

Conclusion

The latest Drewry data underscores a cautiously optimistic outlook for transpacific freight rates, influenced by market dynamics and the easing of tariffs. As the industry continues to adapt to evolving trade policies and supply chain challenges, stakeholders should remain vigilant and proactive in managing costs. The potential for more predictable and lower freight rates offers hope for improved logistics planning and cost control in the near future.