Container rates down after six-week surge

The Drewry World Container Index (WCI) snapped a six-week rally, falling three per cent for the week of April 13-17.

The surge over the past few weeks was initially triggered by higher bunker fuel prices following the late-February conflict in the Middle East. After trending downwards throughout January and early February, the index spiked in response to the geopolitical oil supply disruptions. That brief upwards momentum has now reversed, with the WCI falling to US$2,246 per 40-ft container amid declining rates on Asia–Europe and Transpacific lanes.

Spot rates from Shanghai to New York and Los Angeles decreased three per cent to US$3,552 and US$2,810, respectively, per 40-ft container. As per Drewry’s Container Capacity Insight, nine blank sailings have been announced on the Transpacific trade route for next week to maintain capacity. Few carriers have announced a peak season surcharge (PSS) of around US$2,000 per 40-ft container, effective May 1. Drewry expects freight rates to remain less volatile in the coming weeks before the implementation of the announced PSS.

Spot rates on the Shanghai–Rotterdam trade route also decreased three per cent to US$2,229 per 40-ft container, while rates on Shanghai–Genoa fell two per cent to US$3,343. Carriers are increasing effective capacity on this trade, as only one blank sailing has been announced so far. Meanwhile, ZIM has announced a new bunker factor (NBF) of US$850 per container, effective May 1, but for now Drewry expects freight rates to remain stable next week.

The U.S.-led naval blockade around the Strait of Hormuz has halted or restricted ships linked to Iran, with multiple vessels turned back. The disruption has strongly impacted global oil supply chains and pushed oil prices even higher. If ongoing negotiations fail, Drewry says shippers should prepare for reduced schedule reliability, potential port omissions, longer lead times and upwards pressure on freight rates.