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Container Rates Rise on Asia-Europe, Transpacific Routes Amid Port Congestion

Container freight rates climbed on major Asia-Europe and transpacific routes last week despite weakening demand, as port congestion and blank sailings kept prices elevated. Nearly two-thirds of capacity deployed between Asia and Europe now transits the Red Sea. According to Alphaliner's survey of the 10 largest carrier networks, 24 of 46 direct services use the passage, representing 63% of deployed capacity. Mediterranean routes showed higher adoption at 70%, compared to 58% on North Europe services. Israeli carrier Zim announced its return to the Red Sea for joint Asia-U.S. East Coast service with Mediterranean Shipping Co., a notable move given that Houthi rebels declared the Bab el-Mandeb Strait closed to Israel-linked vessels as recently as August. Typhoon Champi closed major Taiwanese container ports Friday, while Chinese hubs continue recovering from earlier summer storms. The combination of port backlogs and carriers' capacity restrictions through blank sailings supported pricing even as peak season demand cooled. Carriers sought further rate increases in November, though forwarders reported discounted offers.