Meet&CoLONDON — Global container freight rates moved higher this week, driven by another increase on trans-Pacific trade lanes, as shipping through the Strait of Hormuz remained severely constrained and uncertainty over U.S.-Iran negotiations continued.
The Drewry World Container Index increased 4% to $4,526 per 40-foot container for the week of Aug. 20.
The increase was driven by the trans-Pacific, where spot rates from Shanghai to New York and Los Angeles both rose 9%, reaching $9,507 and $6,802 per 40-foot container, respectively.
Drewry said demand on the trans-Pacific remains resilient while carriers continue to constrain available capacity through blank sailings and other reductions. Seven blank sailings have been announced for next week.
August capacity on Asia-to-U.S. East Coast routes declined 9% month over month, while capacity to the U.S. West Coast decreased 0.4%, further tightening space availability.
Drewry expects freight rates to remain stable next week because of the reduced capacity.
Carriers are also preparing to implement Panama Canal surcharges on Asia-U.S. East Coast and Asia-Gulf Coast routes beginning in September, potentially adding another layer of costs for importers using those services.
Europe rates edge lower
Rates moved in the opposite direction on Asia-Europe routes.
Shanghai-to-Genoa spot rates fell 2% to $4,955 per 40-foot container, while Shanghai-to-Rotterdam rates declined 1% to $4,401. Two blank sailings have been announced for next week, according to Drewry’s Container Capacity Insight.
Port congestion at Shanghai and Rotterdam eased during the week but remained elevated. Average vessel waiting times were 32.3 hours at Shanghai and 25 hours at Rotterdam.
Drewry expects Asia-Europe rates to remain broadly stable next week.
The firm said the broader East-West container market remains uncertain amid a combination of geopolitical and operational pressures. The U.S.-Iran memorandum of understanding concerning the Strait of Hormuz has expired without producing a lasting agreement, although some carriers have begun gradually resuming selected Red Sea and Suez Canal transits following improved security assessments.
Congestion at Asian and European ports and labor disruptions at German ports are also continuing to affect schedule reliability.
Hormuz traffic remains minimal
Conditions around the Strait of Hormuz remain particularly difficult. Only seven commodity vessels transited the strait Thursday, according to ship-tracking data from Kpler cited by Reuters. That was half the number recorded Wednesday as U.S.-Iran peace talks remained stalled.
Four ships entered the waterway, and three exited. The total did not include any very large crude carriers or liquefied natural gas tankers, although one very large gas carrier transporting propane and butane exited Hormuz using the Iranian route.
By comparison, before the war began in February, the Strait of Hormuz carried nearly one-fifth of global crude oil and liquefied natural gas shipments.
Traffic also declined at the Bab el-Mandeb Strait, another critical shipping chokepoint. Kpler recorded 23 commodity ship transits Thursday, down from 34 on each of the previous two days.
The Kpler figures include only vessels operating with their transponders switched on, meaning some ship movements may not be reflected in the totals.
