Asia-to-U.S. Container Rates Rise 20 Percent in One Week

Spot freight rates for 40-foot containers from Asia to the U.S. West Coast rose $655, or 20 percent, over the past week to roughly $3,933, the highest level in at least six months. Rates from Asia to Northern Europe increased $793, or 27 percent, to about $3,649 during the same period.

Since the start of the Iran War, Asia-to-U.S. container rates have risen 109 percent while Asia-to-Europe rates have climbed more than 50 percent. Shipments rerouted around the blocked Strait of Hormuz have produced severe congestion at Southeast Asian transshipment hubs, including Singapore and Malaysia.

Carriers are applying fuel surcharges and shifting costs to importers. A seasonal pickup in demand for ocean freight bookings is adding further upward pressure on rates. Available shipping capacity is expected to tighten further as importers accelerate inventory replenishment in July and August.