Container rates tick up for the first time since early January

The Drewry World Container Index (WCI) increased three per cent to US$1,958 per 40-ft container for the week of March 2-6 due to an increase in rates on the Transpacific trade routes.

Spot rates on Asia–Europe trade routes remained under pressure, with rates on Shanghai–Rotterdam falling two per cent to US$2,052 per 40-ft container and those on Shanghai–Genoa increasing only one per cent to US$2,844.

Since volumes typically rebound in March as factories across Asia reopen, carriers have started planning capacity induction, according to Drewry, with only four cancelled sailings announced on the Asia–Europe/Med trade route over the next two weeks. Drewry expects spot rates on this trade to increase in the coming weeks.

Spot rates from Shanghai to Los Angeles jumped 10 per cent to US$2,402, while those on Shanghai to New York increased seven per cent to |US$2,977 per 40-ft container. According to Drewry’s Container Capacity Insight, only four blank sailings have been announced for the next week on the Transpacific East and West Coast trade routes, much lower than this week, as factories gradually return to full production after the Chinese New Year. Drewry thus expects spot rates on this trade to increase in the coming weeks.

U.S. and Israeli strikes on Iran have effectively frozen tanker movement through the Strait of Hormuz, which carries around 20 per cent of global oil supply, pushing crude oil prices higher amid supply concerns. If the situation persists, rising bunker fuel costs, war-risk premiums and operational disruptions could increase overall freight costs and place upwards pressure on container shipping rates.