The Drewry World Container Index (WCI), the benchmark widely referenced by procurement teams, surged 9% to $4,530 per 40ft container due to rate increases on the Transpacific and Asia–Europe trade routes. Meanwhile, the Intra-Asia Container Index (IACI) decreased 4% to $1,035 per 40ft container. This marks the second consecutive fall in the index, suggesting that the early peak-season volume surge is easing while rates on Middle East routes are stabilising.
On the Transpacific trade route, spot rates continued to strengthen, with those on Shanghai to New York rising 11% to $7,902 per 40ft container and Shanghai to Los Angeles increasing 10% to $6,349 per 40ft container. According to Drewry’s Container Capacity Insight, eight blank sailings have been announced on the Transpacific trade route for the next week, reflecting tight capacity. Carriers continue to announce GRIs and PSS for July in anticipation of strong cargo volumes, with HMM introducing a PSS of $3,000 per 40ft container effective 15 July. Drewry expects rates to rise further in the coming weeks.
Spot rates on trade lanes connecting China with Southeast Asia and South Asia fell again this week, indicating that the early peak-season surge is approaching its end and upward pressure on freight rates is easing. Rates from Shanghai to Jawaharlal Nehru Port slid 6% to $2,155 per 40ft container. Meanwhile, rates from Shanghai to Manila declined 3% to $555 per 40ft container, following a sharp 26% drop last week, as congestion at Manila port eased with average vessel waiting times falling by four hours WoW in Week 26. Moreover, rates from Shanghai to Laem Chabang also declined to $974 per 40ft container. Capacity additions also continue, with Taiwanese forwarder and ship manager TVL Marine re-entering the intra-Asia container shipping market, while MSC has expanded its South China–Central Vietnam Lang Co Express service by reinstating calls at Nansha, Ho Chi Minh City, and Singapore. Drewry expects freight rates to remain broadly stable in the coming weeks.
The East-West and intra-Asia container freight market has remained resilient this year, supported by an early peak season demand and higher shipping costs stemming from geopolitical disruptions. The interim US–Iran agreement has facilitated the reopening of the Strait of Hormuz, with vessel traffic recovering following the evacuation of stranded ships and the designation of authorised transit routes. However, security risks remain elevated after the suspension of ship escort operations following an attack on a containership near Oman. As a result, ongoing geopolitical tensions in the Middle East continue to underpin market uncertainty.
(Graphic image from Drewry and Shanghai photo from Dreamstime)