This week, global container shipping rates increased by 7%, reaching $1,927 for a 40-foot container. This marks a reversal after three weeks of decline, during which rates had dropped to their lowest since January 2025, as reported by the Drewry World Container Index.

The rise in rates was mainly due to increases on routes between the Transpacific and Asia-Europe. Carriers have started to use a new strategy for managing rates. For example, the spot rate from Shanghai to Los Angeles went up by 8% to $2,256, and the rate from Shanghai to New York increased by 6% to $2,895.

In a change from traditional practices, some carriers have shifted from their usual biweekly General Rate Increases to making adjustments weekly. Instead of announcing large increases that quickly disappear, carriers are now applying smaller but more frequent hikes to keep pressure on spot rates, according to the Drewry report. This strategy seems to be working, as analysts expect rates to remain stable in the upcoming week.

Asia-Europe trade routes saw even better improvements, with rates from Shanghai to Genoa rising by 15% to $2,648, and rates from Shanghai to Rotterdam increasing by 4% to $2,241. Unlike the Transpacific routes, the Asia-Europe routes have maintained their rate levels for three weeks now, with carriers using Freight All Kinds (FAK) increases to bolster spot rates ahead of annual contract negotiations.

However, concerns about the Suez Canal still create uncertainty for Asia-Europe shipping lanes. The report highlights that carriers continue to view the Suez as the preferred route between these regions. If the canal fully resumes operations, it would add significant capacity to the market and likely push rates down, but this decline would happen gradually due to possible congestion at ports after the adjustment of East-West shipping routes.

The recovery in rates comes as the container shipping industry faces a challenging market, trying to manage capacity alongside seasonal demand, the impact of previous front-loading, and ongoing geopolitical issues that are affecting major trade routes.