Box rates soar $1,000 in one week on peak rush

Mediterranean Shipping Co., the world’s largest liner operator, in a release Tuesday confirmed one of its vessels was hit by two projectiles as it exited the Port of Um-Qasr in Iran. No injuries were reported aboard the 3,000-TEU Sariska V, which suffered hull damage in the incident in the northern portion of the Persian Gulf. MSC cited Iranian media reports that the Islamic Revolutionary Guards Corps claimed responsibility in retaliation for a U.S. attack on one of its vessels.

At the same time, with crop planting season in full swing U.S. regulators loosened restrictions on how many hours truck drivers hauling fertilizer can be on the road. The Iran war has throttled global supplies moving by ship out of the region.

Approaching 100 days since the start of the war, “[f]or the container market, the closure has primarily meant upward pressure on freight rates via carriers passing on war-elevated fuel costs, which manifested in different ways on different lanes during the low demand months of March, April and most of May this year,” said Freightos analyst Judah Levine.

An early start to the peak season rush – when retailers bring in goods for end-of-year holiday sales – already has been whipsawed by premium charges and reductions in space allocations for contracted shippers.

“[S]pot rates climbed moderately – about 15% – across the ex-Asia lanes through mid-May GRIs [general rate increases] to levels around 20% higher than a year ago, and are starting to spike this week,” Levine said. 

At approximately $3,200 per FEU to the West Coast and $5,000 to the East Coast, Levine noted, last week’s averages were about level for May, as were Asia-Europe prices at $3,000 North Europe and $4,400 to the Mediterranean.

“But June 1 GRIs and PSS (peak season surcharges) introductions have daily rates spiking from $1,000 per FEU to $1,800 per FEU so far this week on these trades, he said, with additional significant increases announced by CMA CGM, Maersk (OTC: AMKBY) and other lines planned for mid-month, too.

Levine said daily rates for Asia-Europe earlier surpassed peak season highs from last June-July. But the trans-Pacific remains about $1,000 per FEU short of the frontloading highs as importers raced to beat tariffs in 2025.

Read more articles by Stuart Chirls here.

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