Container Spot Rates Soar Amid June General Rate Increases

According to The Loadstar, there has been a notable surge in container spot freight rates for both transpacific and Asia-europe routes this week. This spike follows the implementation of general rate increases (GRIs) on June 1, which have remained stable throughout the week. Most major indices reported considerable double-digit gains, with the exception of the Shanghai Containerised Freight Index (SCFI). Interestingly, recent trends suggest that movements in the SCFI frequently enough foreshadow shifts in Drewry’s World Container Index (WCI) for subsequent weeks.

As a notable example, spot rates from shanghai to Los Angeles skyrocketed by 57% compared to last week, reaching $5,876 per 40ft container—this aligns closely with a similar increase of 58% noted on last week’s SCFI for that route. On another front, the WCI’s Shanghai-New York route experienced a notable rise of 39%, concluding at $7,164 per 40ft; this is comparable to a previous week’s SCFI reading that showed a climb of 46% for shipments heading to US East Coast ports.

Shippers are currently grappling with limited capacity. Pete Mento from DSV highlighted this challenge during an episode of Global Trade This Week: “Good luck finding space on ships right now,” he remarked. Many importers in the US are seizing opportunities presented by tariff pauses since shipping costs remain lower than potential tariffs they would otherwise incur. However, they also face GRIs ranging between $1,000 and $3,000 per container as part of these adjustments.Looking ahead,new GRIs are anticipated around June 15 and July 1; however their effectiveness remains uncertain given current market dynamics—today’s SCFI indicates an uptick of about 8% for west coast shipments and an increase of approximately 11% for east coast deliveries. Additionally, as most countries approach a deadline regarding tariff pauses in early July—there’s speculation about demand dropping if tariffs reemerge under any future governance.

Drewry has projected that supply-demand equilibrium may weaken again later this year leading to potential declines in spot rates once more due to ongoing legal disputes over tariffs and changes related to penalties imposed on Chinese vessels.

In terms of Asia-Europe trade routes specifically showing robust growth recently—the WCI recorded its highest weekly gain seen in months: Shanghai-Rotterdam jumped by an extraordinary 32%, finishing at $2,845 per container while Shanghai-Genoa rose by nearly as much at a rate up by 38%, ending at $4,068 per unit.

Despite some skepticism among forwarders regarding whether these rising spot rates would be enduring—space availability hasn’t posed significant issues lately nor have carrier complaints about port congestion resonated strongly with customers—they seem aligned now more than ever: “A jump like this is pretty accurate,” one forwarder shared with The Loadstar recently reflecting positively on new FAK rate hikes initiated from June first.

As we approach peak season within Asia-Europe trades carriers are eyeing further price hikes; MSC has introduced new FAK rates set at $3,900 per unit towards North Europe—a notable increase—and plans additional charges towards Mediterranean ports too starting mid-June. Meanwhile CMA CGM announced its own peak season surcharge effective January next year while Zim implemented its previously communicated surcharge today across all European destinations amounting up to $1,300 per unit.

The Loadstar continues being recognized among logistics professionals as one premier source offering insightful analysis within supply chain management circles.