The Drewry World Container Index (WCI) increased 3% this week to US$2,286 per 40ft container, ending three consecutive weeks of declines as freight rates strengthened on Transpacific and Asia-Europe trade routes.
The rebound was mainly driven by new Emergency Fuel Surcharges (EFS) and Peak Season Surcharges (PSS) introduced by carriers amid ongoing geopolitical uncertainty and rising operational costs linked to the Middle East crisis.
Transpacific Rates Climb
Spot rates from Shanghai to New York rose 7% to US$3,721 per 40ft container, while rates from Shanghai to Los Angeles increased 5% to US$3,062 per 40ft container.
MSC increased its Emergency Fuel Surcharge on the Asia-US East Coast route from US$430 to US$644 per 40ft container. On the Asia-US West Coast route, the surcharge rose from US$272 to US$467 per container.
Meanwhile, CMA CGM introduced a Peak Season Surcharge of US$2,000 per 40ft container effective from 1 May.
Drewry expects freight rates on the Transpacific trade to increase further next week.
Asia-Europe Market Remains Stable
Rates on the Asia-Europe trade lane remained relatively stable despite carriers announcing higher Freight All Kinds (FAK) pricing for mid-May.
Rates from Shanghai to Rotterdam increased 2% to US$2,170 per 40ft container, while rates to Genoa edged up 1% to US$3,075 per container.
Hapag-Lloyd, CMA CGM and MSC announced new FAK rates ranging between US$3,500 and US$4,500 per 40ft container for Asia-North Europe services and between US$4,500 and US$4,600 for Asia-Mediterranean trades, effective 15 May.
However, Drewry said the successful implementation of these increases remains uncertain due to weak demand and excess vessel capacity across the market.
Carriers Continue Capacity Management
Shipping lines continue to reduce capacity through blank sailings and network adjustments.
Effective capacity is expected to decline 3% month-on-month on Asia-North Europe routes and 10% month-on-month on Asia-Mediterranean services during May.
Drewry expects rates on the Asia-Europe trade to remain stable next week.
Hormuz Tensions Continue to Influence Market
The report noted that carriers remain cautious over operations around the Strait of Hormuz as geopolitical tensions continue to affect global shipping markets.
Shipping lines are actively adjusting pricing through Emergency Fuel Surcharges, Peak Season Surcharges and firmer FAK levels as the market remains highly reactive despite stable vessel movements.
