Container rates up due to carrier surcharges

The Drewry World Container Index (WCI) increased three per cent to US$2,286 per 40-ft container for the week of May 4-8 after three consecutive weekly declines, driven by higher freight rates on Transpacific and Asia–Europe trade lanes.

On the Transpacific trade route, rates increased this week following the implementation of emergency fuel surcharges (EFS) and peak season surcharges (PSS) by carriers. Rates from Shanghai to New York rose seven per cent to US$3,721 per 40-ft container, while those from Shanghai to Los Angeles increased five per cent at US$3,062. MSC raised EFS on the Asia–USEC route from US$430 to US$644 per 40-ft container and on the Asia–USWC route from US$272 to US$467, while CMA CGM introduced a PSS of US$2,000 per 40-ft container, effective May 1. Drewry expects freight rates to increase next week.

Spot rates on the Asia–Europe trade route remained stable this week. Rates from Shanghai to Rotterdam increased two per cent to US$2,170 per 40-ft container, while those to Genoa edged up one per cent to US$3,075.

CMA CGM, Hapag-Lloyd and MSC have announced freight-all-kinds rates ranging between US$3,500 and US$4,500 per 40-ft container for Asia–North Europe and between US$4,500 and US$4,600 for Asia–Mediterranean, effective May 15. However, successful implementation remains unlikely due to weak demand and excess capacity, which continue to create a supply–demand imbalance. Carriers continue to manage excess capacity through blank sailings and capacity reductions, 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.

Drewry says 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 FAK levels, keeping the market reactive despite stable vessel movement.