Meet&CoLONDON — Global container freight rates increased this week as trans-Pacific prices climbed, while shipping through the Strait of Hormuz remained severely restricted amid continued uncertainty surrounding U.S.-Iran negotiations.
The Drewry World Container Index rose 4% to $4,526 per 40-foot container for the week of Aug. 20. The trans-Pacific market was the main driver, with spot rates from Shanghai to both New York and Los Angeles increasing 9%. Rates reached $9,507 per 40-foot container on the Shanghai-New York route and $6,802 on the Shanghai-Los Angeles route.
Drewry said trans-Pacific demand remains resilient as carriers continue to limit available capacity through blank sailings and other reductions. Seven blank sailings have been announced for the following week.
Capacity from Asia to the U.S. East Coast fell 9% in August from the previous month, while capacity to the U.S. West Coast declined 0.4%. The tighter capacity is expected to keep freight rates broadly stable next week, according to Drewry.
Carriers are also preparing to introduce Panama Canal surcharges in September on Asia-U.S. East Coast and Asia-Gulf Coast services. The additional fees could increase costs for importers using those routes.
Europe Routes See Modest Rate Declines
Asia-Europe freight rates moved lower during the week. Shanghai-to-Genoa spot rates dropped 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 both Shanghai and Rotterdam improved during the week but remained elevated, with average vessel waiting times of 32.3 hours in Shanghai and 25 hours in Rotterdam.
Drewry expects rates on Asia-Europe routes to remain broadly stable next week.
The broader East-West container market continues to face uncertainty from both geopolitical and operational factors. The U.S.-Iran memorandum of understanding concerning the Strait of Hormuz expired without a lasting agreement, while some carriers have started gradually restoring selected Red Sea and Suez Canal services after reassessing security conditions.
Port congestion in Asia and Europe, along with labor disruptions at German ports, is also affecting schedule reliability.
Hormuz Ship Traffic Remains Severely Restricted
Shipping activity through the Strait of Hormuz remains at very low levels. According to ship-tracking data from Kpler cited by Reuters, only seven commodity vessels passed through the strait Thursday, half the number recorded the previous day as U.S.-Iran peace talks remained stalled.
Four vessels entered the waterway and three exited. The total did not include any very large crude carriers or liquefied natural gas tankers. One very large gas carrier carrying propane and butane did leave Hormuz via the Iranian route.
Before the war began in February, nearly one-fifth of global crude oil and liquefied natural gas shipments passed through the Strait of Hormuz.
Traffic through the Bab el-Mandeb Strait, another major shipping chokepoint, also declined. Kpler recorded 23 commodity-vessel transits Thursday, compared with 34 on each of the previous two days.
Sixteen vessels entered Bab el-Mandeb and seven exited. Two of the outbound vessels were Suezmax tankers carrying crude oil to Vietnam and India. No very large crude carriers or LNG tankers passed through the waterway that day.
Kpler’s figures cover only vessels operating with their transponders switched on, so the data may not capture every vessel movement.
