Port congestion traps 3.4M TEU as container rates rise for seventh straight week

Container Rates Rise for Seventh Consecutive Week as Port Congestion Strands 3.4 Million TEU

The KOBC Container Composite Index has climbed for a seventh straight week as an early peak season and front-loaded demand from the U.S.-China tariff truce continue to strain global shipping capacity. Port congestion across Asia and Europe has trapped an estimated 3.4 million TEU of container ship capacity in queues, tightening available tonnage just as liner operators prepare fresh rate increases for July.

Rates Surge Across Major Trade Lanes

The KCCI, compiled by the Korea Ocean Business Corporation, recorded 3,349 points as of June 15, a 10.1% increase from the prior week, according to KOBC data. The Shanghai Container Freight Index also rose 9.5% to 2,985 that week. Drewry’s World Container Index reached $3,969 per 40-foot container on June 18, up 12% week-on-week, driven by growth on Transpacific and Asia-to-Europe routes.kobc

The rally has been broad-based. Spot rates from Shanghai to Los Angeles surged 51% in a single week to $4,836 per FEU in mid-June, according to industry data. A KOBC source attributed the acceleration to the postponement of U.S. tariffs, which “led to a surge in demand as shippers rush to load goods in advance,” advancing the traditional peak season by one to two months.chosun

Congestion Tightens Available Capacity

Port congestion is compounding the supply squeeze. The Loadstar reported on June 23 that 3.4 million TEU of box ship capacity remains queued across Asian and European ports. Major hubs including Shanghai, Ningbo, Singapore, Busan, and Rotterdam are all experiencing elevated vessel counts, according to Linerlytica data as of June 20.theloadstar

The congestion traces in part to the reopening of the Suez Canal earlier this year, which sent a surge of roughly 2.5 million TEU through North European gateways as vessels from both legacy Cape of Good Hope routes and new Suez strings converged simultaneously. Logistics provider Kuehne+Nagel warned of “elevated risk of port omissions due to congestion spikes” in its June operational update.gocubic

Carriers Line Up July Rate Increases

Against this backdrop, carriers are filing general rate increases for July 1. COSCO Shipping Lines has announced a GRI of $3,000 per 40-foot container for shipments from the Far East to the United States, and $3,000 per 40-foot container for Canada-bound cargo. The filing covers cargo originating from China, Japan, South Korea, India, Vietnam, Thailand, Singapore, Malaysia, and Indonesia.container-news

Freight forwarders are urging shippers to book well in advance. “Both USEC and USWC services are experiencing significant capacity constraints,” one logistics provider noted, warning that “carriers are maintaining firm rate levels as space remains extremely tight throughout the market”.averitt