Global container shipping costs have fallen to their lowest point since the onset of Red Sea disruptions nearly two years ago, as softening demand collides with ample vessel capacity.

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The Drewry World Container Index, published Thursday, shows the spot rate for a 40-foot container from Shanghai to Rotterdam dropped to $1,735 last week, its weakest level since mid-December 2023. That was when carriers including MSC and Maersk began rerouting vessels around the Cape of Good Hope to avoid Houthi missile and drone attacks in the Red Sea, triggered by the conflict in Gaza.

The diversions continue to strain global supply chains, with the International Monetary Fund and Oxford University’s PortWatch tool reporting just 17 ships transiting the Suez Canal on September 21, compared with 47 daily crossings in early December 2023.

Despite the ongoing detours, freight prices have steadily eased. Analysts point to sliding demand and excess capacity as the main drivers. The Shanghai–Rotterdam route has now seen eight consecutive weeks of rate declines, while uncertainty over U.S. tariff policy under President Donald Trump has added volatility throughout 2025.

Rates on the trans-Pacific trade are also under pressure. Drewry’s benchmark for Shanghai–Los Angeles fell to $2,311 per 40-foot container, the lowest since December 2023. Port of Los Angeles Executive Director Gene Seroka has warned that U.S. import demand could weaken further in the second half of the year.