East-west freight rates continue rise; even transatlantic edges up

Container spot rates have continued their upward trajectory on the trunk east-west trades with double digit week-on-week gains on the Asia-Europe and Asia-North America routes.

Drewry’s World Container Index (WCI) recorded 12% week-on-week increases on Shanghai-Rotterdam, Shanghai-Los Angeles and Shanghai-New York legs, which respectively finished the week at $4,172, $4,476 and $5,717 per 40ft.

“Drewry expects ex-China freight rates to rise due to increased demand, tight capacity, and the need to reposition empty containers,” the analyst said.

The WCI recorded an 11% increase in Shanghai-Genoa, to $4,776 per 40ft. Freightos’ FBX Asia-Mediterranean leg recorded a 17% increase on the leg to $5,179 per 40ft.

“Ex-Asia ocean rates climbed sharply last week as early month GRIs took hold – with additional significant increases possible in the coming days from mid-month GRIs and surcharges – as unseasonal increases in demand combine with already-stretched capacity due to Red Sea diversions that require the use of more ships and are still causing congestion in places like the West Mediterranean and South Asia,” Freightos head analyst Judah Levine said.