Freight Rates Decline as Container Shipping Market Enters Downward Trend

Oversupply of capacity and reopening of shorter Red Sea route contribute to falling rates on key trade routes

Published on Feb. 18, 2026

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The global container shipping market is entering a prolonged downward phase, with spot market rates declining for the fifth consecutive week. The downward trend reflects weak demand on key trade routes and increasing capacity availability, further exacerbated by the prospect of ships returning to the shorter Red Sea route. Major shipping companies like Maersk have warned that the oversupply of capacity and reopening of shorter routes could cut profits by up to half in 2026.

Why it matters

The decline in freight rates is a significant development in the container shipping industry, which has a major impact on global trade and supply chains. The oversupply of capacity and increased competition on key routes could lead to further rate reductions, putting pressure on shipping companies' profitability and potentially affecting the cost of goods for consumers.

The details

The Drewry World Container Index (WCI), which tracks the average cost of transporting a 40-foot container on the main global routes, fell by 1% to $1,933. Spot rates from Shanghai to major US destinations, such as Los Angeles and New York, also recorded a 1% drop, to $2,214 and $2,800 respectively. In Europe, the Shanghai-Rotterdam route fell by 2% to $2,127 per 40-foot container, while the Shanghai-Genoa route fell by 3% to $2,965. To contain the oversupply of capacity, carriers have announced 57 cancellations for the next two weeks on the East and West Pacific routes, a significantly higher number than in previous years.

  • The global container shipping market has been in a downward phase for the past five consecutive weeks.
  • The Chinese New Year, which begins on February 17, 2026, is expected to contribute to further volatility in the market.

The players

A.P. Moller-Maersk

A Danish shipping and logistics company that has warned that the oversupply of capacity and reopening of shorter routes via the Red Sea could cut the group's profits by up to half in 2026.

Vincent Clerc

The CEO of Maersk, who has stated that the arrival of new ships and the likely reopening of shipping via the Red Sea will put pressure on freight rates this year.

Drewry

A global maritime research and consulting firm that publishes the Drewry World Container Index (WCI), which tracks the average cost of transporting a 40-foot container on the main global routes.

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What they’re saying

“New ships are arriving and, at the same time, shipping via the Red Sea is likely to reopen. All of this will put pressure on rates this year.”

— Vincent Clerc, CEO, Maersk (Naftemporiki)

What’s next

Shipping companies are expected to continue announcing capacity reductions in an effort to stabilize freight rates, but the long-term outlook remains uncertain as the industry grapples with the impact of overcapacity and the reopening of shorter trade routes.

The takeaway

The decline in container shipping freight rates is a significant development that reflects the industry's ongoing challenges with oversupply and weakening demand. This trend could have far-reaching implications for global trade and supply chains, as shipping companies and their customers navigate the shifting market dynamics.