Global container freight rates are rising sharply across major east-west trade lanes as the ongoing Middle East conflict, congestion at key Asian transshipment hubs and mounting concerns over an energy crisis tighten supply chains and inject fresh volatility into the shipping market.
According to maritime analytics firm Xeneta, average spot rates from the Far East to the U.S. West Coast increased 20% over the past week to $3,933 per FEU, more than doubling since the onset of the Middle East crisis on February 28. Freight rates on the route are now 109% higher than pre-conflict levels.
The rally extends beyond routes directly impacted by the Strait of Hormuz disruption. Spot rates from the Far East to the U.S. East Coast have climbed 92% since late February to $5,103 per FEU, while rates to North Europe and the Mediterranean have risen 65% and 51%, respectively.
Peter Sand, Chief Analyst at Xeneta, said the latest surge reflects the growing impact of secondary disruptions stemming from the Middle East conflict rather than direct interference with container shipping routes.
“The wave of freight rate increases is gathering momentum across global ocean container shipping trades, fueled by ongoing conflict in the Middle East and knock-on disruption in South East Asia ports, plus growing fears of an energy crisis in the second half of 2026,” Sand noted.
A key factor behind the rate escalation is mounting congestion at major transshipment hubs such as Port of Singapore and Port Klang. Shipping lines have been adjusting service networks and rerouting cargo in response to the closure of the Strait of Hormuz to commercial shipping, leading to delays and reduced schedule reliability.
“Port disruption is toxic for supply chains, especially at transshipment hubs with global significance,” Sand said, highlighting the cascading effects of congestion on global shipping networks.
The disruption has also spilled into trades with no direct exposure to the Middle East, particularly the Transpacific market, where stronger cargo demand and tighter vessel utilization are placing additional upward pressure on rates.
Xeneta further warned that fears of rising energy costs could trigger a new wave of cargo frontloading later this year. Importers seeking to avoid higher manufacturing and transportation costs may accelerate shipments, potentially driving freight rates even higher.
“The market may yet be far from its peak across trades globally,” Sand cautioned.
Similar trends have been identified by shipping consultancy Drewry. The firm reported that its World Container Index rose 23% this week to $3,433 per 40-foot container, supported by strong gains on both Transpacific and Asia-Europe routes.
Rates from Shanghai to Los Angeles surged 31% to $4,565 per FEU, while Shanghai–New York rates increased 20% to $5,505. On the Asia-Europe corridor, rates from Shanghai to Rotterdam rose 25% to $3,579, while Shanghai–Genoa rates climbed 20% to $5,089.
Drewry said the traditional peak shipping season appears to have started earlier than usual, driven by inventory replenishment, retailer promotions and cargo movements ahead of anticipated tariff changes in the United States. The consultancy also cited geopolitical tensions in the Middle East as a key contributor to rising bunker fuel costs and fuel-related surcharges.
With early peak-season demand coinciding with congestion at major Asian hubs and growing uncertainty in global energy markets, industry observers warn that container freight rates could continue their upward trajectory through the coming months if geopolitical tensions remain unresolved.
