Global freight rates jump 80% amid Middle East conflict

The benchmark World Container Index for a 40 foot (12.19 meters) container increased to $3,433 as of June 4, up from $1,899 on February 26. The level is now close to last year’s peak of $3,543 recorded in June 2025.

Drewry reported that the increase has been driven by tighter capacity, higher fuel related surcharges and continued disruption in key maritime corridors.

Trade flows through the Strait of Hormuz remain heavily reduced, at around 90% below normal levels, while ongoing rerouting in the Red Sea is extending transit times and pushing importers to book earlier than usual.

The market is also entering peak season earlier than expected, adding further pressure on rates as demand strengthens across major routes.

On the Transpacific corridor, rates continued to climb this week. The Shanghai to Los Angeles route rose 31% to $4,565 per 40 foot container, while Shanghai to New York increased 20% to $5,505.

Drewry noted that carriers have reduced blank sailings compared with recent weeks, signaling expectations of stronger cargo volumes. Additional demand is also linked to front loading ahead of potential United States tariff changes expected in July, as well as cargo movements associated with the 2026 FIFA World Cup. Carriers have also introduced peak season surcharges, adding further support to pricing.

On Asia Europe routes, spot rates also moved higher. Shanghai to Rotterdam rose 25% to $3,579 per 40 foot container, while Shanghai to Genoa increased 20% to $5,089.

Shippers have been bringing forward bookings ahead of an expected fuel cost adjustment in early July. Major carriers have introduced additional peak season surcharges and higher general freight rates, reinforcing the upward trend.

Earlier, Qazinform News Agency reported that the OECD warned that prolonged Middle East conflict could push economies into recession.