The Drewry World Container Index (WCI) rose 12% this week (as of May 14) to $2,/FEU, driven by freight rate increases on the Transpacific and Asia-Europe routes.
On the Transpacific route, freight rates surged this week as shipping lines began imposing Emergency Fuel Surcharges (EFS) and Peak Season Surcharges (PSS). Among them, the freight rate from Shanghai to New York rose 14% to $4,/FEU, and from Shanghai to Los Angeles rose 10% to $3,/FEU. According to the Drewry Capacity Weekly data, seven sailings have been announced to be blanked on the Transpacific route in the coming week, as shipping lines continue to manage capacity. Additionally, Yang Ming Marine Transport announced a General Rate Increase (GRI) of $2,/FEU effective from May 15. Drewry expects freight rates on this route to continue rising in the coming week.
On the Asia-Europe route, spot freight rates also rose this week, influenced by capacity reductions and FAK rates announced by shipping lines in May. Among them, the freight rate from Shanghai to Genoa rose 20% to $3,/FEU, and from Shanghai to Rotterdam rose 11% to $2,/FEU. Due to increased cargo bookings, tight space, and transport disruptions caused by the US-Israel-Iran conflict, shippers are rushing to ship goods early, and the peak season on the Asia-Europe route is expected to arrive earlier than in previous years. As demand recovers, Drewry expects freight rates on this route to continue rising next week.
Regarding the Middle East situation, the conditions around the Strait of Hormuz and the Red Sea remain under close watch. Due to the uncertain outlook of the US-Israel-Iran conflict, shipping lines are exercising caution in route planning and operations. Meanwhile, rising fuel prices and tight space continue to support freight rates. Shipping lines are also persistently pushing up freight rates by imposing EFS, PSS, GRI, increasing FAK rates, and implementing blank sailings along with flexible capacity management strategies.
