Global Shipping Rates Hit New Lows Amid Weakening Demand

Global container and dry bulk shipping rates are experiencing significant declines, reflecting a broad slowdown in demand. The Drewry World Container Index has fallen for 16 consecutive weeks, hitting its lowest level since January 2024, with major trade lanes like Shanghai-Rotterdam and Shanghai-Genoa seeing sharp drops. Baltic Exchange indices for dry bulk shipping also show steep declines across all vessel types, signaling weakening global commodity transport and industrial demand. Despite some capacity reductions and blank sailings aimed at balancing supply, rates continue to fall due to persistent low demand, exacerbated by trade tensions and tariff uncertainties between the U.S. and China. This trend points to a cooling in global trade, with potential negative impacts on shipping companies' profits and broader economic activity.