Middle East disruption pushes container rates up

The Drewry World Container Index (WCI) rose five per cent for the week of March 23-27 to US$2,279 per 40-ft container, recording the fourth consecutive week of increases. The increase was supported by higher rates on the Asia–Europe and Transpacific trade routes, with those on Asia–Europe indicating a strong rise.

Spot rates on the Asia–Europe trade increased this week due to ongoing tensions in the Middle East, with a double-digit rise on Shanghai–Genoa and a smaller rise on Shanghai–Rotterdam. Freight rates on Shanghai–Genoa increased 12 per cent to US$3,474 per 40-ft container, while rates to Rotterdam rose three per cent to US$2,552. According to Drewry’s Container Capacity Insight, only three blank sailings have been announced for next week on the Asia–Europe trade, suggesting stable capacity. Meanwhile, carriers such as CMA CGM have announced higher freight-all-kinds rates of around US$3,500 per feu effective April 1. With carriers continuing to push for rate increases, Drewry expects spot rates to increase further in the coming weeks.

On the Transpacific route, spot rates from Shanghai to New York jumped three per cent to US$3,393 per 40-ft container, while those to Los Angeles increased four per cent to US$2,686. According to Drewry’s Container Capacity Insight, six blank sailings have been announced for the next week across the Transpacific East and West Coast trade routes. As ongoing tensions in the Middle East continue to disrupt fuel supply and create uncertainty across global supply chains, Drewry expects spot rates to increase in the coming weeks.

Ongoing disruptions in the Strait of Hormuz, a key route for nearly 20 per cent of global oil, have tightened bunker fuel availability and pushed prices higher. In Asia, fuel supplies in key hubs like Singapore and China are starting to tighten, prompting carriers to adopt operational measures such as slow steaming, alternative refuelling strategies and emergency fuel surcharges to manage costs. These measures are expected to keep freight rates elevated in the short term.