Spot Rates Predicted to Continue Upward

Container spot rates on major east-west trades saw moderated price increases following significant previous hikes. Drewry’s World Container Index (WCI) composite rate rose by 2% week on week and is up 202% year on year. Future rate hikes are expected to be less extreme, offering some relief for shippers in the short term. However, rates could still exceed $20,000 per 40ft on Asia-Mediterranean routes due to ongoing supply-demand dynamics and logistical challenges such as port congestion and the Red Sea crisis. In response to high demand and disrupted logistics, MSC has reinstated its Mustang shuttle service between China and the US west coast, aiming to enhance capacity and speed.