Middle East conflict pushing container rates up short-term

The Drewry World Container Index (WCI) increased eight per cent to US$2,123 per 40-ft container for the week of March 9-13.

The jump in rates is mainly due to a sharp rise on the Asia–Europe route, alongside gains on the Transpacific route. Notably, while double-digit growth was observed on the Transpacific route last week, the Asia–Europe route recorded a double-digit increase this week.

Spot rates on the Shanghai–Rotterdam trade route soared by 19 per cent to US$2,443 per 40-ft container and those on Shanghai–Genoa increased 10 per cent to US$3,120 per 40-ft container.

According to Drewry’s Container Capacity Insight, only five blank sailings have been announced on the Asia–Europe trade route next week. Meanwhile, several carriers, such as MSC and CMA CGM, have announced higher freight-all-kinds rates effective March 22. As carriers continue to manage capacity while implementing rate increases, Drewry expects spot rates to rise further in the coming weeks.

Spot rates from Shanghai to Los Angeles increased four per cent to US$2,503 per 40-ft container, while those from Shanghai to New York increased three per cent to US$3,080.

According to Drewry’s Container Capacity Insight, seven blank sailings have been announced for the next week on the Transpacific East and West Coast trade routes. Meanwhile, the ongoing Middle East conflict continues to affect global supply chains, supporting higher freight rates in the short term. Drewry expects spot rates on this trade to increase in the coming weeks.