Container spot rates explode as peak season arrives early

The Shanghai Containerized Freight Index (SCFI) today (5 June) jumped 155 points to 2,726.48, its highest level in the last couple of years, marking the fifth consecutive week of gains. The rally is being echoed across global benchmarks.     The Drewry World Container Index (WCI) climbed 23% this week to $3,433 per feu, driven by sharp increases on the transpacific, intra-Asia and Asia-Europe trades. On the transpacific, spot rates from Shanghai to Los Angeles surged 31% to $4,565 per feu, while rates to New York rose 20% to $5,505 per feu. On Asia-Europe, rates from Shanghai to Rotterdam increased 25% to $3,579 per feu, while Shanghai-Genoa climbed 20% to $5,089 per feu.

Drewry said the traditional peak season has started earlier than usual this year, with demand boosted by shippers accelerating bookings ahead of possible US tariff changes expected in July. Additional cargo linked to preparations for the 2026 FIFA World Cup and inventory replenishment ahead of major retail promotions are also supporting volumes.

Carriers have capitalised on the stronger market by successfully implementing peak season surcharges and higher freight-all-kinds rates. Capacity discipline remains evident, with only three blank sailings scheduled on the transpacific next week as liners position vessels to capture rising demand.     According to Lars Jensen, container shipping analyst and chief executive of Vespucci Maritime, the market has tightened dramatically. “Spot rates virtually exploded this week,” Jensen wrote on LinkedIn.      “We are continuing to see a strong supply-demand balance in favour of the carriers as an early peak is clearly gaining momentum.”        Jensen argued that the current strength is ultimately linked to ongoing tensions in the Middle East.

“The Hormuz crisis is the reason why the Red Sea crisis is not resolved,” he wrote. “It is the detour around Africa due to the Red Sea crisis, which continues to absorb a large amount of vessel capacity.”

Prior to the latest escalation in the region, shipping had begun to see the first signs of a gradual return to Suez Canal routings.  Financial analysts are also becoming increasingly bullish. HSBC Global Investment Research said the market had entered an early peak season likely to persist through the coming months.      “Container shipping markets have entered an early peak season with momentum that looks set to persist,” HSBC stated, citing front-loading, port congestion and carrier capacity management as factors tightening vessel supply.