Global container freight demand has not shown signs of improvement and continues to drive a downward trend in rates, according to market indices. Drewry’s composite World Container Index (WCI) for March 6, 2025, decreased -3% per 40ft container, led by a -9% decline in the Pacific trade rates. This marks the lowest level observed since January 2024. The Shanghai Containerized Freight Index (SCFI) which gives a strong indication of the market’s supply and demand balance, fell by a further -5% week-over-week on March 7.

Linerlytica has reported that carriers are beginning to respond to the situation, scaling back capacity on key routes. The consultant noted that MSC has withdrawn its Trans-Pacific Mustang service and is reallocating its largest 24,000 TEU vessels from the Asia-North Europe to the Med and West Africa routes. Additionally, the OCEAN Alliance has postponed a new Asia-North Europe service, while the Premier Alliance is expected to delay two Pacific routes planned for May.

According to MDS Transmodal data, the most significant reduction in capacity is on the Trans-Pacific. Capacity decreased by -5% compared to February, although it remains 16% higher compared to the same period last year. This initial drop could foreshadow wider service adjustments ahead. On the Asia to Europe trades, the decline in capacity is less pronounced, with a reduction of -2% compared to February’s volumes.

Darron Wadey, a consultant at Dynaliners, stated that shipping capacity grew over 30% from 2020 to 2024 while global cargo volumes increased by less than 10%. Although widespread service cuts have not yet occurred, Wadey believes carriers may resort to blanking sailings before deciding to lay up ships. “We’re not there yet,” Wadey said, “but when we consider the inherent overcapacity along with the imposition of trade tariffs worldwide, which naturally dampen cargo movements, such a scenario is not inconceivable.”

Source: Seatrade Maritime News