Container rates tick up after three-week decline

The Drewry World Container Index (WCI) rebounded after three consecutive weeks of decline, edging up one per cent to US$4,297 per 40-ft container for the week of Aug. 3-7. The increase was supported by higher rates on Transpacific trade routes.

On the Transpacific trade route, spot rates from Shanghai to New York rose four per cent to US$7,893 per 40-ft container, while rates from Shanghai to Los Angeles increased three per cent to US$5,894.

Carriers successfully implemented general rate increases (GRIs) as volumes held firm into August. Meanwhile, port congestion across central and south China continued to constrain capacity, providing further support to freight rates. According to Drewry’s Container Capacity Insight, eight blank sailings are scheduled for next week, unchanged from this week and indicating stable available capacity in the market. As a result, Drewry expects the volatility in rates to reduce in the coming week.

On the Asia–Europe trade route, spot rates remained stable this week. Freight rates from Shanghai to Genoa fell two per cent to US$5,506 per 40-ft container and those from Shanghai to Rotterdam held steady at US$4,653. According to Drewry’s Container Capacity Insight, three blank sailings were recorded this week and the same number is scheduled for next week on the Asia–Europe trade lane. As carriers continue to manage available capacity, Drewry expects rates to remain stable next week.

The East–West container freight market remained volatile amid Middle East tensions, new U.S. tariffs and congestion at Asian ports. Iran and the U.S. resumed hostilities in late July, increasing uncertainty over shipping through the Strait of Hormuz and prompting several carriers to introduce emergency fuel surcharges (EFS) from August.

Carriers continued to manage capacity through blank sailings and service adjustments. Ongoing uncertainty surrounding global trade policies, geopolitical developments and port congestion is expected to influence market conditions and freight rate trends in the coming weeks.