Rates Fell for a Second Consecutive Week
Ocean spot rates moved lower in the week ending July 23, providing some relief after the sharp increases recorded earlier in the summer.
Drewry’s World Container Index declined 4% to $4,374 per 40-foot container. On the transpacific trade, its Shanghai-to-Los Angeles benchmark fell 6% to $5,878, while Shanghai-to-New York decreased 4% to $7,598.
Drewry attributed the movement to increased carrier capacity and easing demand and expected rates to remain broadly stable during the following week. Drewry World Container Index, July 23
The Shanghai benchmarks should be treated as market indicators rather than direct quotations for containers departing Vietnam, Malaysia or other Asian origins. Actual rates depend on the load port, destination, carrier, service, contract status, equipment availability and applicable surcharges.
More Capacity Does Not Eliminate Schedule Risk
Drewry reported that six blank sailings were scheduled on the transpacific trade for the following week, down from nine during the current week. This suggests that carriers were returning some capacity to the market.
The wider five-week outlook remains less predictable. Between July 27 and August 30, carriers had announced 57 cancellations across 726 planned sailings on the major East–West trades. That represents an 8% cancellation rate.
Approximately 54% of those cancellations were concentrated on eastbound transpacific services. In other words, 92% of scheduled sailings were still expected to operate, but importers on Asia-to-U.S. routes faced a greater share of the disruption than customers on other major trades. Drewry Cancelled Sailings Tracker, July 24
A lower spot-rate index therefore does not guarantee that a specific booking will depart as scheduled. A rolled container can add a week or more to replenishment time even when the quoted freight price is attractive.
U.S. Import Volumes Remain High
The Port of Los Angeles handled 1,002,734 TEUs in June, its busiest June on record. Loaded imports reached 530,558 TEUs, approximately 12.8% higher than in June 2025. Port of Los Angeles June statistics
Strong port throughput demonstrates that U.S. import demand remained active while carriers were adjusting capacity. It also means inland trucking, rail transfers, terminals and warehouses can become constraints even when vessels and ocean rates are available.
Millwork buyers should therefore compare complete port-to-warehouse transit plans. A lower ocean quotation can lose its advantage if the route involves longer terminal dwell time, expensive inland delivery or an unreliable transshipment connection.
Measure Freight at the Product Level
A container rate alone does not reveal the freight impact on an individual moulding.
Buyers can calculate the ocean-freight allocation per linear foot using:
Container freight cost ÷ total linear feet loaded
For example, a $1,000 change in freight equals:
$0.01 per linear foot when the container carries 100,000 linear feet
$0.02 per linear foot when it carries 50,000 linear feet
These are illustrative calculations; actual loading quantities depend on profile dimensions, length, packaging, weight and container restrictions.
The same freight increase will have a greater unit-cost effect on large, low-density profiles than on smaller profiles that use container space efficiently. Buyers should evaluate freight by SKU or profile group instead of distributing it evenly across the shipment.
Container Utilization Is a Purchasing Tool
When freight remains volatile, improving loading efficiency can be as valuable as negotiating a lower headline rate.
A well-planned mixed-profile container may help a distributor maintain assortment depth while spreading freight across more saleable units. However, the mix must consider several practical constraints:
Long and short bundle dimensions
Product density and maximum cargo weight
Protection against abrasion and edge damage
Unloading sequence at the destination
Minimum inventory requirements for high-turn profiles
Separation requirements between different materials or packaging systems
Loading the maximum possible quantity is not always the best result. An efficient container should also be safe to unload and aligned with the buyer’s expected sales.
Five Actions for the Next Booking Cycle
Millwork buyers can respond to the current market with five practical measures:
Request an all-in quotation: Confirm base freight, fuel surcharges, peak-season charges and destination costs.
Compare multiple sailing dates: A slightly later vessel may provide a better rate or more reliable space.
Build time into replenishment: Avoid planning inventory around the fastest published transit time.
Review the loading plan before booking: Confirm profile mix, quantity, weight and cubic utilization.
Track cost per linear foot: This provides a better purchasing signal than the container rate alone.
Several carriers have announced emergency fuel surcharges for August amid continuing geopolitical and energy-market risks. Importers should verify whether these charges are included in each quotation rather than assuming the late-July index decline will reduce the final invoice.
Planning Through Freight Volatility
Late July’s rate decline and improving capacity are positive developments, but cancellation risk, fuel costs and strong port volumes remain relevant. A flexible booking strategy and efficient container plan can help importers reduce the effect of weekly market swings.
Reshine Wood Industry works with importers and distributors on primed pine and MDF mouldings, packaging, profile mixes and container planning. Coordinating product quantities with loading and shipment requirements can support more predictable landed costs and replenishment.
