Fuel and peak-season surcharges impact container rates

The Drewry World Container Index (WCI) dropped for the third consecutive week, easing one per cent to US$2,216 per 40-ft container for the week of April 27-May 1.

The slight decline was due to softer rates on Asia–Europe, Transpacific and Transatlantic trade routes. Despite elevated fuel costs and ongoing geopolitical risks, Drewry said rates remain under sustained downward pressure due to excess capacity and low demand.

Spot rates on the Asia–Europe trade route continued to soften this week, reflecting the ongoing supply–demand imbalance. Rates from Shanghai to Genoa and Rotterdam fell one per cent to US$3,039 and US$2,127 per 40-ft container, respectively. In response to falling rates, carriers are managing capacity through blank sailings and capacity reductions. According to Drewry’s Container Capacity Insight, seven blank sailings have been announced for the coming week, with effective capacity expected to decline three per cent month-over-month on Asia–North Europe and 10 per cent on Asia–Med in May. Drewry expects rates to remain stable next week.

On the Transpacific trade route, rates decreased this week due to market volatility amid uneven demand and capacity adjustments. Rates from Shanghai to New York fell two per cent to US$3,483 per 40-ft container, while rates from Shanghai to Los Angeles remained stable at US$2,930

According to Drewry’s Container Capacity Insight, eight blank sailings have been announced for next week. Effective capacity is expected to increase 11 per cent month-over-month on Asia to East Central North America and six per cent on Asia to West Central North America in May. In addition, carriers are implementing emergency fuel surcharges (EFS) and peak-season surcharges (PSS) effective May 1, with MSC increasing EFS on the Asia–USEC route from US$430 to US$644 per 40-ft container and CMA CGM introducing PSS of US$2,000 per 40-ft container. Drewry expects freight rates to increase next week.

Middle East tensions around the Strait of Hormuz remain under watch, with carriers staying cautious on routing and operations. Carriers are also actively adjusting pricing through EFS, PSS, and firmer freight-all-kinds levels, keeping the market reactive despite stable vessel movement.