Drewry’s World Container Index (WCI) rose 12% to 2,553 dollars per 40-foot container, which is attributed to the increase in freight rates on the transpacific and Asia-Europe trade routes.
“On the transpacific trade route, rates rose sharply this week due to the implementation of Emergency Fuel Surcharges (EFS) and Peak Season Surcharges (PSS) by shipping lines,” the consultancy noted.
Freight rates from Shanghai to New York rose 14% to 4,252 dollars per 40-foot container, while those from Shanghai to Los Angeles increased 10% to 3,357 dollars per FEU.
Drewry specified that seven cancelled sailings have been announced on the transpacific route for next week, as shipping lines continue to manage capacity. Furthermore, “Yang Ming Line announced a General Rate Increase (GRI) of 2,000 dollars per 40-foot container, effective from May 15. Drewry expects rates to continue rising next week,” it added.
On the Asia-Europe trade route, spot market rates also increased this week “due to Freight All Kinds (FAK) rates, along with capacity cuts announced by shipping lines for May,” the entity highlighted.
Rates from Shanghai to Genoa increased by 20% to 3,701 dollars per 40-foot container, while those from Shanghai to Rotterdam rebounded by 11% to 2,413 dollars per FEU.
“The Asia-Europe peak season is expected to start earlier than usual, as the increase in cargo bookings, limited vessel space, and disruptions linked to the conflict between Israel and Iran are driving shippers to move their goods early. Given that demand is recovering, Drewry expects rates to continue rising next week,” the consultancy underscored.
Regarding tensions in the Middle East, particularly concerning the Strait of Hormuz and the Red Sea, Drewry specified that “they remain under close watch and shipping lines are maintaining caution in their routes and operations due to concern over the ongoing conflict between Israel and Iran.”
“Meanwhile, higher bunker fuel prices and limited vessel space continue to support freight rates. Shipping lines are also actively adjusting their prices through EFS, PSS, GRI, and firmer FAK levels, along with cancelled sailings and flexible capacity management strategies, which keeps the market strong despite relatively stable vessel movements,” it concluded.
