Container freight rates are continuing their upward climb across major East–West trades, even as trade-related and geopolitical disruptions continue to place pressure on container shipping demand.

According to Xeneta’s latest ocean container shipping market update, spot rates from the Far East have increased significantly across key corridors. June projections indicate Trans-Pacific rates to the U.S. West Coast are expected to exceed 80% above pre-Middle East crisis levels, while rates to the U.S. East Coast are projected to climb by around 70%. Increases are also expected on Asia-Europe routes, with increases of approximately 44% into North Europe and 40% into the Mediterranean.

This strengthening trend is also reflected in broader freight indices. As reported by ShippingWatch, the Shanghai Containerized Freight Index (SCFI) has now posted five consecutive weekly gains. Drewry’s World Containerized Index has similarly recorded four straight weeks of increases on both Trans-Pacific and Asia-Europe trades. These increases have been driven in part by carrier pricing strategies, including surcharges and supply discipline.  

Market tightness is being driven largely by supply-side constraints. According to ShippingWatch’s report, ongoing instability in the Middle East continues to divert vessels away from the Red Sea, forcing longer routings via the Cape of Good Hope. The extended voyage time absorbs vessel capacity, effectively tightening supply.

Xeneta’s Chief Analyst Peter Sand pointed out that shippers relying on the spot market are facing higher costs. He noted that rates are still on the uptick even during this period of soft demand.

“There is no hiding place from this market turmoil,” Sand said, highlighting the limited options available to shippers. “Carriers entered the year facing a potential market collapse as services return to the Red Sea, but have ultimately found themselves able to charge higher and higher rates to shippers across the market willing to pay a premium to protect supply chains against global uncertainty.”

Source: Xeneta, ShippingWatch