The Drewry World Container Index (WCI) rose 3% week-on-week to $2,/FEU after three consecutive weeks of decline, driven by higher freight rates on the Trans-Pacific and Asia-Europe routes.
On the Trans-Pacific route, freight rates moved upward this week as shipping lines began imposing Emergency Fuel Surcharges (EFS) and Peak Season Surcharges (PSS). The Shanghai to New York route rose 7% to $3,/FEU, and the Shanghai to Los Angeles route increased 5% to $3,/FEU. MSC raised its EFS from $/FEU to $/FEU for Asia to US East Coast routes, and from $/FEU to $/FEU for Asia to US West Coast routes; CMA CGM introduced a PSS of $2,/FEU effective May 1.
Spot market freight rates on the Asia-Europe route remained stable this week. The Shanghai to Rotterdam rate edged up 2% to $2,/FEU, and the Shanghai to Genoa rate rose slightly by 1% to $3,/FEU.
CMA CGM, Hapag-Lloyd, and MSC have announced that, effective May 15, FAK rates for Asia to North Europe will be set at $3,500–$4,/FEU, and for Asia to the Mediterranean at $4,500–$4,/FEU. However, due to weak demand coupled with excess capacity, the supply-demand imbalance remains unchanged, making the successful implementation of these rates less likely. Shipping lines will continue to manage excess capacity through blank sailings and capacity reductions. Effective capacity on Asia to North Europe routes is expected to decline by 3% month-on-month in May, and by 10% on Asia to Mediterranean routes.
The situation in the Middle East’s Strait of Hormuz continues to impact the market, with shipping lines maintaining a cautious approach to route planning and operations. Meanwhile, shipping lines are actively adjusting pricing strategies through EFS, PSS, and raising FAK levels. Although vessel operations remain relatively stable, the overall market remains in a state of stress response.
