Container Rates Extend Rally as Hormuz Crisis Drives Fuel Costs Higher

Container freight rates pushed higher for a fourth straight week, as rising fuel costs and ongoing disruption in the Middle East begin feeding directly into global shipping markets.

Drewry’s World Container Index (WCI) climbed 5% this week to $2,279 per 40-foot container, with gains across both Asia–Europe and Transpacific trades signaling a broad-based tightening in conditions.

The strongest moves were seen on the Asia–Europe corridor, where rates from Shanghai to Genoa jumped 12% to $3,474 per FEU, while Shanghai–Rotterdam rose 3% to $2,552. The uptick comes as carriers continue pushing rate hikes into April, with companies like CMA CGM targeting Freight All Kinds (FAK) levels around $3,500 per FEU.

Despite the price momentum, capacity remains relatively steady for now. Drewry data shows just three blank sailings scheduled next week on the Asia–Europe trade, suggesting carriers are relying more on pricing discipline than capacity cuts—at least for the moment.

On the Transpacific, rates also moved higher, though more modestly. Shanghai–New York climbed 3% to $3,393 per FEU, while Shanghai–Los Angeles rose 4% to $2,686. Six blank sailings have been announced across East and West Coast routes, indicating some supply-side management as carriers balance demand and cost pressures.

The underlying driver remains the escalating crisis in the Strait of Hormuz, where disruptions to a waterway responsible for nearly 20% of global oil flows are tightening bunker fuel availability and pushing prices higher.

Fuel constraints are beginning to show up across major Asian bunkering hubs, including Singapore and China, forcing carriers to adjust operations. Measures such as slow steaming, alternative refueling strategies, and emergency fuel surcharges are increasingly being deployed to offset rising costs.

With energy markets under pressure and supply chain uncertainty persisting, Drewry expects spot rates to continue climbing in the weeks ahead—marking a sharp reversal from the downward trend that dominated much of early 2026.

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