Container Rates Climb Six Weeks on Americas Demand, Chinese Delays

Container shipping rates have increased for six straight weeks, driven by strong demand in the Americas and disruptions at Chinese ports from back-to-back typhoons, according to Korea Ocean Business Corporation (KOBC). The KOBC Container Composite Index (KCCI) climbed to 4,697 points, a 2.3% rise from the prior week, while the Shanghai Containerized Freight Index (SCFI) also rose 2.3% to 3,590.05 points.

KOBC, which releases the KCCI every Monday since July 2022, noted that while European routes remained weak, rates on Americas and Southeast Asia routes offset this, leading to an overall increase. The main factor was vessel congestion and schedule delays at major Chinese ports due to typhoons, which strained short-distance services between China and Southeast Asia.

This caused Southeast Asia routes to surge 12.2% compared to the previous week. Rising rates on Americas routes stemmed from supply disruptions from China and Panama Canal operational constraints, while delays at Chinese ports affected trans-Pacific voyages. The Panama Canal reduced daily slots on September 3, and another reduction was set for September 15, further exacerbating the strain.

However, odd-numbered vessel restrictions, initially planned for October 1, were postponed, lessening immediate impacts. European routes continued to decline as demand lagged behind high port congestion, while Middle Eastern routes remained flat due to supply pressures in the Gulf region being offset by increased Suez Canal capacity.