Shipping Container rates spark global trade chatter at $10,000
PORTS & SHIPPING

Shipping Container rates spark global trade chatter at $10,000

Companies moving goods from Asia could face costs of up to $10,000 for an urgent full-size shipping container over the next month, which is roughly double the current spot rates.

It was reported by Marseille, France-based CMA CGM SA, the world?s No. 3 carrier, that a rate of $7,000 has been set for a 40-foot container for the second half of June for goods being shipped to northern Europe from Asia. This marks an increase from the current charge of approximately $5,000. Rates for the first half of June vary from $6,000 to $6,500, with premium service being offered at $7,500 to $10,000.

The container shipping industry finds itself in a scramble to meet demand that has been increasing in the US and Europe, largely due to capacity being stretched thin by more than five months of attacks on vessels in the Red Sea. Additionally, another factor contributing to the rise in prices is the increased ordering by importers, driven by concerns about potential disruptions such as port congestion, labor strikes, and higher tariffs on Chinese-made goods.

Trine Nielsen, senior director and head of ocean EMEA at Flexport Inc., a logistics technology company based in San Francisco, remarked that companies are altering their stock strategies and adjusting to longer lead times, resulting in shifts in normal shipping patterns. Some companies are even resorting to double-booking or increasing booking numbers to secure space, further complicating the situation.

According to Freightos data compiled by Bloomberg, in September 2021, spot rates for 40-foot containers to the US West Coast from China skyrocketed to over $20,000 due to a surge in demand related to the pandemic. Four months later, the rate for shipments from China to Europe reached nearly $15,000.

The CEO of Hamburg, Germany-based Hapag-Lloyd AG, the world?s No. 5 container carrier, attributed the recent spike in rates to the capacity issues in the Red Sea and the robust demand, which he believes supports the argument for an early peak season and inventory restocking.

While the duration of the surge in short-term container rates remains uncertain, Rolf Habben Jansen, the CEO, mentioned in an interview on Bloomberg Television on Wednesday that it could persist for another couple of months if the situation in the Red Sea does not improve.

Companies moving goods from Asia could face costs of up to $10,000 for an urgent full-size shipping container over the next month, which is roughly double the current spot rates. It was reported by Marseille, France-based CMA CGM SA, the world?s No. 3 carrier, that a rate of $7,000 has been set for a 40-foot container for the second half of June for goods being shipped to northern Europe from Asia. This marks an increase from the current charge of approximately $5,000. Rates for the first half of June vary from $6,000 to $6,500, with premium service being offered at $7,500 to $10,000. The container shipping industry finds itself in a scramble to meet demand that has been increasing in the US and Europe, largely due to capacity being stretched thin by more than five months of attacks on vessels in the Red Sea. Additionally, another factor contributing to the rise in prices is the increased ordering by importers, driven by concerns about potential disruptions such as port congestion, labor strikes, and higher tariffs on Chinese-made goods. Trine Nielsen, senior director and head of ocean EMEA at Flexport Inc., a logistics technology company based in San Francisco, remarked that companies are altering their stock strategies and adjusting to longer lead times, resulting in shifts in normal shipping patterns. Some companies are even resorting to double-booking or increasing booking numbers to secure space, further complicating the situation. According to Freightos data compiled by Bloomberg, in September 2021, spot rates for 40-foot containers to the US West Coast from China skyrocketed to over $20,000 due to a surge in demand related to the pandemic. Four months later, the rate for shipments from China to Europe reached nearly $15,000. The CEO of Hamburg, Germany-based Hapag-Lloyd AG, the world?s No. 5 container carrier, attributed the recent spike in rates to the capacity issues in the Red Sea and the robust demand, which he believes supports the argument for an early peak season and inventory restocking. While the duration of the surge in short-term container rates remains uncertain, Rolf Habben Jansen, the CEO, mentioned in an interview on Bloomberg Television on Wednesday that it could persist for another couple of months if the situation in the Red Sea does not improve.

Related Stories

Gold Stories

Next Story
Products

Koemmerling opens Navi Mumbai experience centre

Koemmerling, a brand of the profine Group, has expanded its presence in the Mumbai metropolitan region with the opening of a new experience centre in Navi Mumbai and launched its Allure S46 minimal sliding door system for the Indian market.Located in CBD Belapur, the facility was inaugurated by Peter Mrosik, Owner and CEO, profine Group, along with Farid Khan, Chairman and Managing Director, profine India, and Kamal Bajaj, CEO, profine India.The company said the new centre will showcase its portfolio of uPVC and aluminium window and door systems to architects, developers and homeowners.The ina..

Next Story
Products

India's waterproofing market nears Rs 150 bn milestone

India's waterproofing industry is approaching a market size of Rs 150 billion and is expected to surpass the $2 billion milestone, according to speakers at the 2nd India International Waterproofers Conference & Expo 2026 organised by the Waterproofers Association of India (WAI) in New Delhi.The two-day event brought together more than 20 speakers, 55 international delegates and 53 exhibition booths, with discussions focusing on climate-resilient construction, advanced waterproofing technologies and international collaboration.Inaugurating the event, Durga Shanker Mishra, former Secretary, ..

Next Story
Real Estate

Dilip Buildcon Q1 FY27 Revenue at Rs 23.78 billion

Dilip Buildcon Limited reported consolidated revenue from operations of Rs 2,378 crore in Q1 FY27, along with EBITDA of Rs 429 crore and profit after tax of Rs 128 crore.Consolidated EBITDA margin stood at 18.1%, improving from 17.1% in Q4 FY26. On a standalone basis, revenue from operations was Rs 1,930 crore, EBITDA stood at Rs 199 crore and PAT was Rs 39 crore, with an EBITDA margin of 10.3%.The company’s order book stood at Rs 27,691 crore as of 30 June 2026, compared with Rs 28,830 crore as of 31 March 2026. Roads and highways accounted for 17.1% of the order book, irrigation and water ..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement