Container rates jump due to carrier surcharges

The Drewry World Container Index (WCI) surged 12 per cent to US$2,553 per 40-ft container for the week of May 11-15 due to higher freight rates on Transpacific and Asia–Europe trade routes.

On the Transpacific trade route, rates jumped this week due to the implementation of emergency fuel surcharges (EFS) and peak season surcharges (PSS) by carriers. Freight rates from Shanghai to New York increased 14 per cent to US$4,252 per 40-ft container, and those from Shanghai to Los Angeles rose 10 per cent to US$3,357. According to Drewry’s Container Capacity Insight, seven blank sailings have been announced on the Transpacific trade route for the next week, as carriers continue to manage capacity. In addition, Yang Ming Line announced a general rate increase (GRI) of US$2,000 per 40-ft container effective May 15. Drewry expects rates to increase further in the coming week.

On the Asia–Europe trade route, spot rates also increased this week due to freight-all-kinds (FAK), along with capacity cuts announced by carriers in May. Rates from Shanghai to Genoa increased 20 per cent to US$3,701 per 40-ft container, and those from Shanghai to Rotterdam jumped 11 per cent to US$2,413. The Asia-Europe peak season is expected to start earlier than usual as higher cargo bookings, tight vessel space and disruptions linked to the U.S./Israel-Iran conflict are prompting shippers to move cargo earlier. As demand is rebounding, Drewry expects rates to increase further in the coming week

Middle East tensions around the Strait of Hormuz and the Red Sea remain under close watch, with carriers staying cautious on routing and operations amid ongoing U.S./Israel-Iran conflict concerns. Meanwhile, higher bunker prices and tight vessel space continue to support freight rates. Carriers are also actively adjusting pricing through EFS, PSS, GRI and firmer FAK levels, alongside blank sailings and flexible capacity management strategies, keeping the market firm despite relatively stable vessel movement.