Peak season container shipping between Asia and Europe has started early

The peak season for container shipping on the route between Asia and Europe appears to have started remarkably early this year. Container rates are rising sharply and volumes from China are also increasing rapidly.

According to the World Container Index compiled by consultancy Drewry, the average spot rate for a container from Shanghai to Rotterdam rose by 15 per cent this week.

Peak season for container shipping leads to rising rates

The average rate for a 40-foot container on the Shanghai-Rotterdam route stood at $2,773 this week. At the start of May, that figure was still around $2,100.

The rising rates indicate that demand for container transport from Asia is picking up faster than usual. Traditionally, the peak season does not begin until the summer period.

Shipping lines are capitalising on the rising volumes and attempting to raise rates further. CMA CGM has already announced a Peak Season Surcharge for containers bound for Northern Europe.

Peak season for container shipping is starting earlier and earlier

During previous logistics crises, too, the peak season began earlier than usual. During the Red Sea crisis, many shippers chose to import earlier for fear of delays.

According to market analysts, a similar pattern now appears to be emerging again. Container bookings from China to Europe have risen sharply in recent weeks.

Danish shipping analyst Lars Jensen even reports a 36 per cent rise in booking volumes from China to Europe.

This is boosting confidence among shipping lines that demand will remain strong for the time being, despite uncertainties in the Middle East and on the energy market.

Container shipping peak season remains market-dependent

Nevertheless, the container market remains sensitive to fluctuations. The situation regarding the Strait of Hormuz, energy prices and the significant overcapacity of container ships could quickly influence the market.

Shipping companies are attempting to support the market in part through capacity management and price increases. For the time being, however, demand appears strong enough to allow for further increases.

Consultants expect container rates to rise further in the coming weeks if the early peak season actually continues.

You can read more about international container flows on the page about sea freight.

For logistics companies, it will be important in the coming months to secure capacity in good time and to take rising transport costs into account.