THE DREWRY World Container Index (WCI), increased 12% to $3,969 per 40ft container, driven by growth in rates on the Transpacific and Asia to Europe trade routes. The composite index is at its highest level in 18 months.
Source: Drewry World Container Index
Source: Drewry World Container Index
On the Asia–Europe trade route, spot rates expanded this week. Freight rates from Shanghai to Rotterdam rose 15% to $4,342 per 40ft container, and those from Shanghai to Genoa increased 12% to $5,756 per 40ft container. According to Drewry’s Container Capacity Insight, only three blank sailings have been announced on the Asia to Europe trade route for the next week, reflecting tight capacity. Strong peak season demand due to frontloading of cargo ahead of the expected 1 July bunker fuel adjustment, enabled carriers to successfully implement surcharges. Carriers have announced further PSS and higher FAK rates from July. Hence, Drewry expects rates to rise further in the coming weeks.
The recent US–Iran interim agreement has improved sentiment across global shipping markets by reducing the risk of disruptions in the Strait of Hormuz, a key corridor for global energy exports. However, uncertainty remains regarding its implementation and the implications for global shipping. The easing of geopolitical tensions is expected to stabilise oil and bunker fuel prices, potentially reducing cost pressures on ocean carriers. Meanwhile, strong peak-season demand and the continued implementation of carrier surcharges are keeping upward pressure on spot rates.