Container shipping rates surged over the past week as higher fuel costs, port congestion across parts of Asia, and rising demand ahead of the peak shipping season combined to push prices upward.
According to Xeneta, the spot rate for a 40-foot container from Asia to Northern Europe climbed 27% week-on-week to US$3,649, while rates to the US West Coast rose 20% to US$3,933. Drewry’s latest index also showed spot rates reaching their highest level in nearly a year.
Freight costs have risen sharply since the outbreak of the US-Iran conflict on 28 February. Xeneta data shows rates from Asia to the United States have more than doubled, while Europe-bound rates have increased by over 50%. Shipping lines have introduced fuel surcharges, passing rising energy costs on to importers.
The market is also facing tighter vessel capacity ahead of the busy July-August restocking season. Cargo rerouted due to disruptions in the Strait of Hormuz has contributed to congestion at major transshipment hubs such as Singapore and Port Klang, creating knock-on effects across global trade lanes.
“Port disruption is toxic for supply chains, especially at transshipment hubs with global significance in Southeast Asia,” said Xeneta Chief Analyst Peter Sand.
With oil prices expected to remain elevated and some importers accelerating shipments to avoid further increases, analysts believe freight rates could continue rising in the months ahead.
The impact is extending beyond ocean freight. The latest US Logistics Managers’ Index recorded the fastest increase in transportation costs since the survey began a decade ago.
