Spot Rates Climb as Carriers Push July Hikes

Container spot rates have risen sharply again, after carriers introduced fresh general rate increases and new FAK levels on 15 June. The result was another round of double-digit rises on the transpacific and Asia-Europe trades.

Where rates stand

• Drewry's World Container Index put Shanghai to Rotterdam up 15% to $4,342 per 40ft, and Shanghai to Genoa up 12% to $5,756.

• On the transpacific, Xeneta recorded jumps of 29% to the US west coast and 25% to the east coast.

• Drewry's index rose more moderately there, with Shanghai to Los Angeles up 10% to $5,142.

• MSC has gone further, announcing a 1 July FAK of $7,500 per 40ft to both North Europe and the Mediterranean, ahead of CMA CGM's $6,300 to North Europe.

  
  

What's driving it

Several factors are pushing rates up:

• Front-loading of cargo ahead of an expected 1 July bunker fuel adjustment.

• Tight capacity, with many shippers told vessels are full weeks in advance.

• The closure of the Strait of Hormuz adding further pressure.

Those who secure space are paying a premium to do so.

Looking ahead

Rates are expected to peak in July before easing, though perhaps not as high as MSC is targeting. Carriers are managing capacity to hold rates up, with six transpacific blank sailings planned for next week. The advice is clear: don't bank on a quick correction, and book several weeks ahead to secure space.